1. Home
  2. News & Issues
  3. US Economy

"New Home Starts"

By Kimberly Amadeo, About.com

Definition: When a new home actually breaks ground. This happens after the home is contracted for sale by the buyer and the permit is granted, but usually about six months before closing. For this reason, it is a good predictive indicator of where the housing market supply will be in six months to a year.

Also Known As: Housing starts

Examples: New home starts are down, which is a good indication that supply will tighter next year.

Explore US Economy

More from About.com

  1. Home
  2. News & Issues
  3. US Economy
  4. Glossary
  5. Real Estate Definitions
  6. New Home Starts

©2008 About.com, a part of The New York Times Company.

All rights reserved.