New construction in October went up to its highest point over the past four years, reports CNN Money. According to the Census Bureau, builders increased home building by 3.6 percent in October from the prior month, closing at an annual pace of 894,000 homes.
Housing starts have gone up about 42 percent and permits have risen 30 percent from levels one year ago. Joseph LaVorgna, chief U.S. economist for Deutsche Banks, says the housing recovery has arrived “at a critical time for the overall U.S. economy.”
Christine Lagarde, Managing Director of the International Monetary Fund, agrees. In an October interview with CBS Evening News, Lagarde commented that “good news is lurking out there,” in spite of the fact that unemployment remains high. Economic recovery is gaining traction, evidenced by the fact that financial institutions have been restructured and strengthened and housing has posted steady gains.