Showing some positive signs of recovery, the housing market of United States registered an increase of 11.2% in the number of permits for new-build homes in comparison to the last month.

Though, some of the experts are of opinion that it was wrong to draw any conclusion of recovery from these figures as it gained from a very low base in February, which registered the lowest number of permits issued since 1963.

The US Commerce Department is of opinion that the market will remain with several houses unsold and repossessed homes despite of the fact that home construction also soared by 7.2% between these months.

Sources suggest that most of the houses in the market were standing at half of the price of what they were before the collapse of the economy in 2007 and experts believe that millions of foreclosures have played a key role in driving the prices down.

Pointing out at the strong traffic as a sign of increasing buyers in the market, Marv McDaris, Minnesota division President for Pulte Homes said, “Housing is a basic need, and there's still household creation happening, so there's always going to be a market. The tax credit helped stimulate sales of starter houses last year, but now his company is focusing on building larger single-family houses”.