The huge supplies of foreclosed and repossessed homes in Indianapolis have kept house building at a minimum in the area. Although housing starts improved in 2010, the level of activity remained low. By ForeclosureDataBank.com
Foreclosed and repossessed homes in Indianapolis, Indiana, continued to hinder home building activities in the metro area. Last year, permits issued for new houses increased when compared with 2009 levels, but remained way below the level of activities recorded during the early part of the decade.
With huge number of foreclosed homes in Indianapolis competing against new houses, most home builders have stopped building new dwellings and have either closed business or are waiting until the market improves. There was some good news from last year though, as the number of permits for new home construction improved from 2009. The metro area issued a total of 3,720 construction permits last year, up from the 3,625 issued in 2009.
However, the total is still way below the 10,000 average recorded in the earlier part of the decade. The huge amount of foreclosure listings in Indiana remains one of the primary factors hindering house construction in the region. December 2010 records did show a significant rise when compared with the same 2009 month, with the number of home building permits rising by 2.32%.
The lack of housing start activities in Indianapolis is mirrored in the national level, with foreclosed and repossessed homes all over the U.S. keeping housing construction at bay. At the country-wide level, home builders started 587,600 projects in 2010, slightly higher than the 2009 total of 554,000. The period of 2009-2010 was the worst ever recorded years for house building in the U.S. since 1959.
Although foreclosure houses for sale numbers continue to rise in various key markets of the U.S., some analysts are seeing a glimmer of hope for 2011, with building permits showing an increase during December 2010. According to them, these are good signs for the future of home construction. Permits issued increased by 16.7% last month, bringing the annual seasonally adjusted rate to 635,000, the highest rate recorded since March of 2010.
Analysts believe that foreclosed and repossessed homes will continue to take a big chunk out of new houses’ market share, but they are also optimistic that home buying will pick up in 2011 and home construction will rise along with it.
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