Housing Starts Rise, Builder Confidence Improves
Tuesday, May 4, 2010 | Comments Off
Housing starts rose to a seasonally adjusted annual rate of 626,000 in March, 1.6 percent higher than the 616,000 estimated in February and 20.2 percent higher than the 521,000 estimated a year ago, according to the latest figures compiled by the U.S. Commerce Department.
Permits for new residential construction rose 7.5 percent in March to 685,000 from 637,000 in February, and they were 34.1 percent higher than the March 2009 estimate of 511,000.
Builder confidence rose four points this month to reach its highest level since September 2009, spurred by increased activity from buyers, according to the latest NAHB/Wells Fargo Housing Market Index. “An expected surge in buyer activity leading up to the expiration of the homebuyer tax credits and a gradually improving economy helped to brighten builders’ view of the marketplace in April,” says NAHB chief economist David Crowe.
However, builders are cautious about the next six months as several issues could continue to drag on the housing market, such as credit shortages, high inventory of foreclosures and concerns about the job market.
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