New builds increasing in US property market

Recovery in the US property market continued last month, with new figures revealing that new residential construction increased.

Statistics released from the Commerce Department’s US Census Bureau found that permits for new housing units were up 11.2 per cent in March, while housing starts climbing by 7.2 per cent.

Commenting on the figures, US commerce secretary Gary Locke said that the rise should be welcomed within the current difficult economic environment.

“Despite continued volatility, today’s numbers show welcome growth within the housing market,” he said.

“With 230,000 private-sector jobs added in March in industries from manufacturing to education to construction, there are positive signs for widespread growth throughout the economy and a stronger housing market in the coming year.”

Meanwhile, the recent 2011 Investment and Vacation Home Buyers Survey by the National Association of Realtors found that all-cash buyers are dominating the US second home market.

The organisation noted that 59 per cent of investors used cash to secure properties last year. 

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