New Home Builds Show Solid Signs of Improvement, Top Expectations
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Contractors in January began building new homes at a quicker pace than the previous month, data from the Commerce Department showed Thursday. Warmer weather and additional jobs around the nation helped raise people’s comfort levels in the market.
The rate at which new houses were built rose 1.5 percent from 689,000 in December to an annually-adjusted rate of 699,000 last month. This was much stronger than the economist estimate of 675,000.
The annual rate of filings for building permits, an indicator of future construction expectations, increased 0.7 percent from 671,000 in the previous month to 676,000, but fell short of economics consensus of 680,000.
In January of 2011, the rate at which new houses were being built totaled 609,200, higher than the 2010 and 2009 rates of 587,000 and 554,000, respectively.
Construction of single-family homes fell 1 percent sequentially in January to 508,000 following a 12 percent increase in December. Contractors experienced a larger demand for multi-family homes last month as the annual rate increased 8.5 percent to 191,000, substantially stronger than the 28 percent decline in December.
Regionally, the Midwest lagged the rest of the nation with a 41 percent decline in new home builds. The 18 percent jump in the south and the 12 percent increase in the west region helped offset the Midwest slump.
The rate at which new houses were built rose 1.5 percent from 689,000 in December to an annually-adjusted rate of 699,000 last month. This was much stronger than the economist estimate of 675,000.
The annual rate of filings for building permits, an indicator of future construction expectations, increased 0.7 percent from 671,000 in the previous month to 676,000, but fell short of economics consensus of 680,000.
In January of 2011, the rate at which new houses were being built totaled 609,200, higher than the 2010 and 2009 rates of 587,000 and 554,000, respectively.
Construction of single-family homes fell 1 percent sequentially in January to 508,000 following a 12 percent increase in December. Contractors experienced a larger demand for multi-family homes last month as the annual rate increased 8.5 percent to 191,000, substantially stronger than the 28 percent decline in December.
Regionally, the Midwest lagged the rest of the nation with a 41 percent decline in new home builds. The 18 percent jump in the south and the 12 percent increase in the west region helped offset the Midwest slump.
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