Tax credits dangled in front of first-time buyers caused builders to pour more foundations for homes last month and made for a slightly more optimistic report on the housing market Friday.
It’s unclear, however, whether the $8,000 credit that expires Dec. 1 is enough to turn foot traffic in model homes into sales, particularly locally. The market for new homes in the Chicago area remains weak, at best.
"One-third of the projects out there are basically shut down," said Steve Hovany, president of Strategy Planning Associates Inc., a real estate consulting firm in Schaumburg. "There’s a note on the door, ‘If you’re interested in this project, call this number.’ They aren’t manned anymore."
Nationally, June housing starts rose 3.6 percent from May, to 582,000 units, a level not seen since November, and were led by a 14.4 percent increase in single-family construction. Monthly building permits rose 8.7 percent, including a 5.9 percent increase in single-family permits, which signal building activity in the near future.
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