The commerce department just announced that building of single family homes went up 14.4% Nationally in June, which is the fastest rate of increase in 4.5 years! You can read the full CNBC article here.

Spurring on this activity is the historically low interest rates, currently at 5.20% for a 30 year fixed mortgage (well below that average of 6.63% just a year ago), as well as the First Time Home Buyer Tax Credit which expires November 30, 2009.

Locally, in the greater Puget Sound Region, we have seen prices increase the last 3 months in a row and sales are the highest they have been since August 2007. The median price for homes and condos in King County is $363,116, down 9.22% from $400,000 a year ago, and last month there were 2,083 properties sold.