According to the US Commerce Department, the new home starts rose in January to their highest level in half a year.  Starts nationwide were up by nearly 3 percent for the month and increased in three out of four regions covered by the Commerce report.  New starts rose by 10 percent in the Northeast, the West by 9 percent and the South rose by 1 percent but the Midwestern area declined by 3.2 percent.

The quarterly report for existing homes and condo also showed good news because total sales were up by 14 percent in the last three months of last year.  The District of Columbia along with 48 states showed an increase in home transactions and jumped by double digit percentages in 32 states.

The increase in sales and prices can be attributed to the two federal housing tax credits offered to first time and repeat purchasers and the low mortgage rates.  New and existing homes are now affordable for a larger group of people compared to the past few years and American families can afford to buy median priced home with an income of $64,000.