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Economy Title: Housing Starts, Permits Rise as U.S. Builders Rebound April 16 (Bloomberg) -- Builders broke ground on more U.S. homes in March than anticipated and took out permits at the fastest pace in more than a year, a sign of growing confidence that sales will stabilize. Housing starts climbed to an annual rate of 626,000 last month, up 1.6 percent from February’s revised 616,000 pace that was higher than initially estimated, Commerce Department figures showed today in Washington. Building permits, a sign of future construction climbed to the highest level since October 2008. The gains in part may be due to milder weather following the February blizzards, combined with a rush to have properties available for buyers seeking to qualify for a government tax credit that expires at the end of June. The jump in permits also signals builders anticipate demand will hold up even as foreclosures climb and the jobless rate hovers near a 26-year high. “Things are getting a little bit better and builders have a little more visibility,” Jonathan Basile, an economist at Credit Suisse in New York, said before the report. “As the recovery matures more and we see more job growth we might see housing come back.” Stock-index futures held earlier losses following the report. The contract on the Standard & Poor’s 500 Index fell 0.2 percent to 1,205.7 at 8:34 a.m. in New York. Treasury securities rose, sending the yield on the benchmark 10-year down to 8.81 percent from 3.83 late yesterday. Exceeds Forecast Starts, which last month reached the highest level since November 2008, were forecast to rise to a 610,000 rate from a previously reported 575,000 for February, according to the median projection of 74 economists in a Bloomberg News survey. Estimates ranged from 580,000 to 650,000. Building permits were forecast to fall to a 625,000 rate during the month from 637,000 in February, according to the median in the Bloomberg survey. 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 multi-family homes, such as townhouses and apartment builders, climbed 19 percent to an annual rate of 95,000. South Jumps The increase in starts was concentrated in the South, which showed an 18 percent surge. 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. The Obama administration extended a credit for first-time homebuyers in November and expanded it to include some current owners. The deadline for signing purchase contracts is the end of this month, and transactions must be completed by June 30. Defaults remain a concern. Foreclosure filings in the U.S. rose 16 percent in the first quarter from a year earlier and bank seizures reached a record. This may continue to drive down prices, creating increased competition for builders. Labor Market A difficult labor market will probably also restrain demand. Economists surveyed by Bloomberg earlier this month projected unemployment would end the year at 9.4 percent, according to the median forecast. The jobless rate reached 10.1 percent in October, the highest level since 1983. Lennar Corp., the third-biggest U.S. homebuilder by revenue, is among companies cutting costs and incentives to try to return to profitability. The Miami-based company last month said orders climbed 18 percent in the quarter ended Feb. 28 from the same time last year as it benefited from selling homes in communities where there was less competition from foreclosure sales. “We are extremely well-positioned to navigate the rocky bottom and ultimate recovery that lies ahead,” Chief Executive Officer Stuart Miller said in a March 24 conference call with investors. The company expects to return to profitability this year, he said. For Related News and Information: Stories on the U.S. economy: TNI US ECO
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#1. To: All (#0)
The best aspect of this number is in the revision. Single family home construction remains somewhat stilted. But the multi- family, which is often the type of structure purchased by either first time buyers or retirees, appears to remain strong.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
The bubble is being re-inflated with new money?
No. It's not unusual to see multi-family activity in these areas. Single family construction is lagging.
#67. To: war (#48) Keep hiding behind the bozo, bozo. (laughing) You've always been a world class pussy. Badeye posted on 2010-01-14 16:12:48 ET Reply Trace
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