US Home Builders Begin to See Credit Thaw |
| CNBC - Aug 16, 2012 |
The U.S. home building industry is finally coming off its lowest volumes ever, albeit in fits and slow starts.
New single family home starts fell 6.5 percent in July from the previous month but are still up 17 percent from a year ago. Building permits, considered a more dependable future indicator, rose 4.5 percent month-to-month and are up 23 percent from a year ago. (Related: Housing Starts Drop, Permits Jump; Jobless Claims Rise.)
Much of the demand is coming from potential buyers who have been shut out of the lower-priced, distressed market by avid, all-cash investors. The big public builders, almost across the board, reported huge jumps in new orders in the first half of this year. Smaller builders are still hampered by lack of credit to build and therefore meet the demand. Construction loans nearly ground to a halt after the latest housing crash.
Just last month PNC Bank [PNC 61.52 0.55 (+0.9%) ] announced it was getting out of the construction loan business for home builders entirely. PNC had acquired the business when it bought Raleigh’s RBC bank, which was apparently already winding down the unit.
Read Full Article from CNBC
- Posted: 2012-08-16 15:56:11
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