US housebuilding at 16-month high as repossessions rise

[Cant trust em]

Source: BBC News

But the figures from the US Commerce Department also showed that the building of single-family homes fell 0.9% to 531,000 new builds a year.

The data is a key indicator of economic activity, but single-family building is the most closely-watched segment.

Overall, 626,000 new houses were built in the last 12 months.

This was higher than the 610,000 forecast by some economists.

The Commerce Department also said that applications for building permits, another barometer of activity, rose by a better-than-expected 7.5% to 685,000.


Read more: http://news.bbc.co.uk/2/hi/business/8625666.stm

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Didn't we just see a huge number of foreclosures reported a few days ago? WTF?

[dmallind]

1. Actually this is probably bad news

SFH's stagnate while MFH's boom seems to me a sign that the smart moeny is betting fewer people will be able to afford their own homes and be forced to rent. Renting an apartment causes much less of an economic impact than buying a house. You don't hire tradespeople to improve a rented apartment when you sign a lease. You buy less furniture and do fewer DIY projects in a place you don't own.

[proudohioan]

5. I agree with you.

When I was forced to have to sell my house in late 2005 (yes, I know I was lucky!), I rented an apartment and have been a renter ever since. I don't anticipate being able to afford to buy another house in the very near future. It is cheaper, but as you point out, you don't spend nearly as much in the economy as an owner would.

[Cant trust em]

7. That's a pretty good read. Condos and apartment buildings are the hottest market right now.

Honestly, as someone who hopes to buy a home in the next 2-3 years, I'm somewhat happy that they're going to flood the market with new construction while foreclosures are still going up. Hopefully I can buy at the bottom.

I'm such a selfish dick.

[proudohioan]

2. WTF???? My sentiments exactly. nt

[Donnachaidh]

3. Commerce Department - putting the SPIN on an industry still in a coma

And of course they don't have to factor in those 600K projected foreclosures coming up.

But HEY -- the economy is improving! Some people are building MORE houses!!!!

:shrug:

[Roland99]

6. I'm in the market for a new home in central FL

Granted there are still a lot of foreclosures but there's plenty of money in FHA and USDA loans and they've tightened their requirements some (raising acceptable FICO scores from 580 to 620 and no longer allowing seller concessions to cover a borrower's down payment)

But there are plenty of new developments going up north, south, east, and west of town as well as urban revitalization projects for certain targeted neighborhoods near downtown.

[Donnachaidh]

10. sooooo basically because you see construction being done around you

you assume that the recovery is real?

:wow:

[Roland99]

12. um, yeah, that's exactly what I said.

:eyes:

[Roland99]

4. Bloomberg has a better article >>>>>

http://www.bloomberg.com/apps/news?pid=20601087&sid=at0NjANnz4nE&pos=2

New-home construction rose 20 percent in March from the same month last year. Permits were up 34 percent in the 12 months ended in March.

Construction of single-family houses decreased 0.9 percent to a 531,000 rate in March, while permits increased 5.6 percent. Work on multifamily homes, such as townhouses and apartment builders, climbed 19 percent to an annual rate of 95,000.

The increase in starts was concentrated in the South. New construction fell in the rest of the country.

A report yesterday showed builder confidence rose this month more than anticipated as a measure of single-family sales reached the highest level in two years. The National Association of Home Builders/Wells Fargo index rose to 19 from 15 in March. Even though the gauge reached the highest level since March 2008, a reading below 50 means a majority of respondents said conditions remained poor.

[Cant trust em]

8. Why is new construction increasing in the south?

Is that the next cheapest place to build and then buy?

[dmallind]

9. Partly but also because that's where population growth is

Not everywhere of course, but the South is growing faster overall than here in the rust belt.

[Roland99]

11. Could also be related to the flooding in the northeast.

Been a very wet winter/spring up that way.