New Builds falter in US property market

Housing starts in the US fell by 4.35 per cent in December, according to figures released by the Commerce Department in the country. Speaking to Overseas Property Professional, national house-building companies like KB Homes and Lennar believe that unemployment and foreclosure rates mean that demand for new builds will continue to be slow. Despite their fall in December, over the course of 2010, housing starts rose by 6.1 per cent compared to the previous year, although they still remained at the second-lowest level since records began, the news provider added. The news comes after RealtyTrac revealed that the number of homes in the US receiving a foreclosure filing is expected to grow by around 20 per cent in 2011. According to the organisation, this is a result of the high unemployment in the country and banks’ decision to resume seizures. Meanwhile, savvy investors have been told to act now if they want to capitalise on the wealth of distressed property available in the US market.

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