A very positive economic sign : Editorials : Oswego Ledger-Sentinel : Hometown Newspaper for Oswego and Montgomery, Illinois
A very positive economic sign
New home construction is continuing at a strong pace in Oswego and is showing signs of picking up in Montgomery, according to information provided this past week by officials with the two villages.
The information shows that between Jan. 1 and June 30, Oswego's building and zoning office issued 59 permits for new single family homes, while in Montgomery the village's issued 16.
Montgomery's total of 16 permits is twice as many as the eight issued for the first six months of last year, while the 59 permits issued by Oswego is down slightly from the 68 issued during the same period last year.
We view the local homebuilding activity as a positive sign for the local economy and the real estate market. New home construction all but came to a complete halt in the wake of the 2008 recession and a glut of foreclosed homes soon flooded the housing market. The foreclosed homes were a key factor in the overall lowering of housing values.
The fact that new home construction is steadily beginning to pick up is a further positive sign that there are now fewer foreclosed homes on the market and property values on existing homes have stabilized and may soon begin to rise. And just as important, each one of those new homes represents a significant source of contractor and sub-contractor jobs, along with a boost to the many businesses that supply the building materials.
We certainly don't expect to see a return any time soon of the pre-recessionary day when Oswego and Montgomery were annually issuing hundreds of building permits for new homes. Still, we view those new homes going up in local subdivisions as a very positive economic sign.