The construction rate of single-family homes is expected to surge during the course of 2012, which could subsequently result in more homes for sale in the coming months.
According to a recent report from Fitch Ratings, new single-family housing starts will rise 10 percent by the end of the year, while the sales of these homes could increase by as much as 8 percent. However, despite the expected long-term improvements, these indicators have been sporadic so far this year.
"Single-family housing finished well below expectations at the beginning of the year," the company said. "Single-family starts fell 8.5 percent, while new-home sales declined 5.9 percent. Existing-home sales, meanwhile, improved 1.7 percent."
These improvements are expected despite instability in home prices, the report said. In addition, other economic indicators, such as a soft job market and recent decline in consumer sentiment, may also continue to weigh heavily on the decisions Americans make when it comes to making major investments, such as purchasing property. Despite all of this, the market continues to lean in the favor of buyers, which could make 2012 a smart time to finally make the transition to homeownership.
