Housing starts up 6.6 per cent
Housing starts across the US rose by 6.6 per cent in April to a seasonally-adjusted rate of 1.17 million. Data from the HUD and the Commerce Department showed that there was an increase of 3.6 per cent for overall permit issuance.
“This month’s modest rise in housing production is consistent with builder sentiment, which has remained steady and in positive territory in recent months,” said National Association of Home Builders Chairman Ed Brady, a home builder and developer from Bloomington, Ill.
The strongest gains in housing starts were in multifamily units, up 13.9 per cent to a SAAR of 394,000 units while single-family starts rose 3.3 per cent to a SAAR of 778,000 units.
All four regions saw increases, led by 4.7 per cent in the West. The Midwest and South increased 3.3 per cent with the Northeast up 3 per cent.
NAHB economists expect low mortgage rates and the strengthening job market to help new homes construction increase during the rest of 2016.
Transit repair set to impact this NYC borough
Brooklyn’s real estate market could be impacted by a proposed closure of a major transit link. The subway line which connects the borough to Manhattan and carries 400,000 commuters every day, requires repairs due to the flooding of the Canarsie tunnels under the East River as a result of Hurricane Sandy in 2012.
City officials warn that the line will become increasingly unsafe without work being done, but residents are concerned about the effect on their daily lives and the borough’s housing market if the proposed shutdown goes ahead. One of the factors that has seen home prices rise in Brooklyn is its transit links. Options being considered include a reduced service through the tunnels or even a complete 18-month closure.
Tyler Perry’s Atlanta mansion sells for record high
The former home of actor and producer Tyler Perry has sold for a record high. The mansion in Atlanta’s Paces community sold for $17.5 million, breaking the city’s previous residential real estate high of $10.5 million according to the Atlanta Business Journal.
The 7-bedroom home set in 17 acres includes a hobby house, caretaker suite and guard house. There is also a swimming pool and tennis court. The selling price means a healthy profit for Perry, who bought it for $9 million. However, it has been heavily discounted from the original listing price of $15 million.