Tag Archives: Housing Starts

Renters and first-time homebuyers want more amenities in their first homes and generally feel a sense of optimism that outpaces the reality in a slowly recovering housing market ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a disconnect that could set the stage for the next housing crisis. Those are the findings that real estate company Trulia unveiled in an American Dream survey it released Wednesday. Of 86 markets in the 100 largest metro areas, 61 percent, or nearly two-thirds, of Americans believe that home prices will rise over the next year, according to the company.

Housing permits soared in May to their highest level since September 2008, surging 7.9 percent to 780,000, the Census Bureau and HUD reported jointly Tuesday, but housing starts dropped 4.8 percent to 708,000 giving back all of April's gains. At the same time, permits for April were revised upward to 723,000 from the originally reported 715,000. April housing starts were also revised to 744,000, up from the originally reported 717,000 percent drop. Surveyed economists expected increases in both areas.

Negative reports on the economy may be shaking up confidence, but Capital Economics released a report Friday stating that in their view, the foundations for a sustainable recovery are still in place. The employment situation in the U.S. and issues overseas such as the euro-zone crises are all taking a toll on the economy and consumer confidence. Yet, there are still reasons to make the argument that the recovery is not going to be derailed. Home sales and prices have increased, and mortgage affordability stays high.

Housing permits dipped in April for the first time in four months, the Census Bureau and Department of Housing and Urban Development reported jointly Wednesday but housing starts improved. Both indicators remained far above year-earlier levels. The month-over-month increase in starts in April appeared still larger because of a downward revision to March's report. Economists surveyed by Bloomberg expected permits to drop month-over-month and starts to increase over the same time.

Builder confidence jumped five points in in May to 29, its highest level since the same month in 2007, the National Association of Home Builders said Tuesday. Economists had expected the index to edge up to 26 in May. The month-over-month increase was the largest since April 2009. The total index in May was up 13 points from May 2011, the strongest year-over-year gain since April 2004. All three components of the index ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô current sales, sales six months out and buyer traffic ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô showed strong increases in May.

Housing permits surged another 4.5 percent in March to a seasonally adjusted annual rate of 747,000, the highest level since September 2008, the Census Bureau and Department of Housing and Urban Development reported jointly Tuesday. At the same time though, housing starts fell for the third time in the last four months to the lowest level since last October. March housing starts were reported at a seasonally adjusted annual rate of 654,000 compared with 694,000 in February. Starts have been flat for the past three years.

Housing lingered in the doldrums of a recovery last year but may pick up by 2014 as the U.S. economy generally improves, analysts and economists said Wednesday. The Urban Land Institute polled 38 real estate analysts and economists to signal their expectations for "broad improvements" in the nation├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós economy and real estate markets in 2012. The survey revealed that transaction volume in commercial real estate markets could reach as much as $312 billion in 2014, up from a projected $250 billion in 2012. The news is welcome for an industry that has stayed under a cloud since the crisis.

Housing starts fell 1.1 percent in February to 698,000, compared with market expectations for a smaller decline, the Census Bureau and HUD jointly reported Tuesday. Single-family starts plunged 9.9 percent to 457,000, the steepest decline in a year, according to the agencies. The starts suggest strongly January's unexpectedly strong report was influenced by unseasonably warm weather, which pulled starts forward. Single-family starts have been weak for the past three years. Housing permits, unaffected by weather, rose 5.1 percent in February.