- Published: Wednesday, 10 February 2016 16:41
Housing’s long, slow road back form the Great Recession has been full of fits and starts, but it appears to be finally hitting the accelerator. Most major forecasts released this fall see strong, steady growth for home construction into 2016 and beyond, bolstered by an improving economy. Though the housing market is currently at 53 percent of normal, by the end of 2016, single-family housing starts are forecast to hit more than 900,000 units, or about 74 percent of normal. That number could rise to more than 1 million units, or 91 percent of normal by 2017 especially as remodeling grew 6.8 percent in 2015 and is expected to grow 6.1 percent in 2016.
Scott Thurber, Vice President of Associated Building Supply Inc. says, “Housing prices continue to escalate on the San Francisco Peninsula and in the Bay Area from San Jose to San Rafael. We’re seeing the same in Southern California. The influx of foreign money, specifically China, into California is also driving demand in the housing market. We haven’t seen the real estate market this strong in the Bay Area and Southern California in years. The midrange segment is flourishing too, and seems to be enjoying the most significant appreciation. We’re watching sleepy beach town shift to destination resort areas, driving real estate prices and demand up. An example of this is Santa Cruz. Two years ago, a 900-square-foot, two-bedroom, one-bath, non-ocean-view home was selling for $550,000. Today, the same home is selling for $780,000. This is a byproduct of Santa Cruz upgrading their downtown, community facilities and attracting more high-end business.” Click HERE to read the full article.