For the first time in 3 months new construction rose 17.2 percent in May, 2009, as well as the applications for building permits. These are two very good signs that our ‘under-the-weather’ housing market may be on the road to recovery. The figures are still 45.2 percent lower than they were this time last year; however any sign of a rebound is a good sign.

It’s been a difficult time for new construction trying to compete with the plummeting home prices that are believed by many economists to continue falling until spring of next year; however this unexpected rise is an encouraging sign that the housing slump may be beginning to bottom out.

Even with all of the encouraging news, many people are still hesitant to purchase a home, as the rising unemployment and falling home prices are a bit unsettling, however, the Obama Administration is scheduled to release a plan to put an end to the lending abuses that started the downfall of the financial system tomorrow, perhaps that will help to ease many potential homebuyers minds.