Tue Jun 19, 2012, 12:26 PM
Purveyor (24,137 posts)
New Home Construction Up In May And Permits Are Highest Since 2008
A sign that the economy is improving is that new home starts increased 3.2% in May and applications for permits for new homes and apartments increased 7.9% and are at the highest level in since September 2008. The Census Bureau released the May data this morning.
The government also said April was much better for housing starts than first thought. The government revised the April starts to 744,000 — up from an initially reported 717,000 and the fastest building pace since October 2008.
Although single family housing starts were up 4.8% in May and 28.8% over last year, total starts were down because new apartment starts dropped in May. Month to month variations in apartments starts are normal because it takes longer to get an apartment project out of the ground than a single family home. What is important is the trend, and the trend has been up for three months.
Permits for ne construction increased to a seasonally adjusted rate of 780,000 — the most since September 2008. This shows that builders and developers are optimistic about the future. Although 780,000 is half what economists would like to see, it is far larger than the months during the recession when the home building virtually stopped.
Read more: http://www.examiner.com/article/new-home-construction-up-may-and-permits-are-highest-since-2008
8 replies, 1811 views
Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
New Home Construction Up In May And Permits Are Highest Since 2008 (Original post)
Response to Purveyor (Original post)
Tue Jun 19, 2012, 01:15 PM
Roland99 (37,706 posts)
3. The news ain't really that rosy >>>>
Housing Starts Post Biggest Drop Since August 2011 As Permits Rise
We just got another indication of how US housing has "bottomed"... if only in terms of promises and strong words. While permits, or promises that at some point in the indefinite future, a house will be built, soared from 723K to an annualized rate of 780K, the highest since September 2008, on expectations of a 730K print, actual holes dug, or Starts plunged from a revised 744K to 708K, the biggest miss of expectations of a modest improvement from the pre-revision number since April 2011, and the biggest sequential drop since August 2011. And while recently all the starts strength was in multi-family units as America prepares to become a renter society, in May it was actually the 1-unit houses that saw an increase from 500K to 516K units, as multi-family tumbled from 236K to 179K. So much for the REO-To-Rent plan? Finally, looking at actual completions, the number tumbled by 10.3% from an annual rate of 667K to 598K in May.