Friday, July 27, 2012

Meaninfgul Strides in the Construction Industry

Both nationally and locally the Construction Industry is making meaningful strides towards recovery to date in 2012. This positive pace has been without any governmental incentives that were in place last year. Nationally, housing starts rose 6.9% in June from May to a seasonally adjusted annual rate of 760,000, the highest since October 2008. In addition, the Home Builder Confidence continues. The July NAHB/Wells Fargo Housing Market Index jumped 6 points to a level of 35. This is the highest in more than five years and the largest one month increase since the recession recovery in 2002. (This is based on three components: current sales and sales expectation and builder traffic.)
     Locally, the building industry has picked up as well on a higher pace. On Hilton Head Island the number of new single family home permits increased 50% from May to June.  The dollar volume increased 48% from May June. 
      Historically, Hilton Head Island is an insulated market during recessionary times. Typically Hilton Head is one ot the last locations to be hit by a recession and one of the first locations to recover. With a sub-tropical climate, a variety of planned communities Hilton Head Island is very attractive to many baby boomers reaching their retirement age as well as younger families that are looking for their perfect vacation home or rental investment. Investing in Hilton Head Island has much potential!

Courtesy Bunting Construction Co.

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