Building permits rise sharply

While home construction figures are still well below normal levels, data from the Department of Commerce shows that many of the country's home builders are expecting this upcoming spring to be the start of a turnaround in the market for new homes.

According to government data, building permits increased by 16.7 percent in December compared to the previous month, showing a desire from builders to restock the depleted inventory of new homes in the coming months. While that number was still 6.8 percent below December 2009, those numbers were inflated by the homebuyer tax credit.

"While builders remain extremely cautious about new construction at this time, they are looking forward to putting their employees back to work as economic conditions improve over the new year," said David Crowe, chief economist for the National Association of Home Builders.

However, so far the number of projects actually under construction remains low. Housing starts in December were 4.3 percent below November's levels and 8.2 percent below 2009 figures. Crowe says builders have had difficulty getting financing.

An increase in home construction, and construction workers, could boost the Houston real estate market. According to the Association General Contractors of America, the Houston-Sugarland-Baytown region has shed more than 3,000 construction jobs over the last year.