Home sales up, construction jobs on the increase - 13 WTHR Indianapolis

There are new and encouraging signs of economic recovery. Existing home sales are up, and new home sales and construction are up, too - up enough that construction workers are finally finding jobs.

Home sales across the country bumped up better than two percent in July. The National Realtors Association says that's the first increase in three months. In central Indiana, new home builders say that after years of fits and starts, the industry is headed up - not booming yet, but certainly improving.

For the first time in years, developers are busy clearing land for new and bigger neighborhoods. Ryland Homes says it's buying more building lots this year than the last six years combined. At Arbor homes, the sales scoreboard on the conference room wall is posting winning numbers.

It is a welcome sight for company president Curtis Rector. "Finally we've seen, month after month, after month, consistent growth. We have consistent positive signs," he said.

Nationwide, builders received more new home permits in July since the summer 2008. Here construction is up nearly 10 percent from last year.

Four years ago when the market crashed, Paul McConnell laid off all his workers, and held on to his small drywall business. We caught up with McConnell as he unloaded supplies at new Fishers subdivision.

"l about lost everything I had. I just hung in there. And finally it is coming back. It was really tough. Tough times," he said. McConnell says he's now blessed to have plenty of work.

A healthy housing market is likely to fuel healthier economy. When the financial crisis put the housing industry into a tailspin, it took the economy with it.

Many economists believe the economy won't truly recover until the housing industry is back on its feet.

A new home is an economic gold mine.

"It means more materials being utilized. It means more labor; you have plumbers, electricians you have all the different components which produce jobs that go into a building homes," said Dr. Rachel Smith, an associate professor of finance at the University of Indianapolis.

Even with the improvements, the housing industry is still far from what it was. Existing home sales are about a million short of what is considered healthy for the economy. New home construction in central Indiana is down about 70 percent from its peak in 2005.

For buyers, the increased demand for new homes means higher prices. The rebound is also putting some builders in a bind. An industry once awash with workers looking for work is now working harder to find workers.