Housing data for October was mixed, but overall signs of a sustained housing recovery remain solid.
U.S. housing starts fell 11% to a seasonally adjusted annual pace of 1.06 million units, the lowest level since March, the Commerce Department said Wednesday. Economists polled by Reuters had forecast housing starts falling to a 1.16 million-unit pace last month.
Still, October marked the seventh straight month that starts remained above 1 million units, the longest stretch since 2007. That suggested a sustainable housing market recovery, according to Reuters.
“We’re confident that the broader housing market recovery will continue,” said Tom Wind, executive vice-president of home lending at EverBank.
Groundbreaking on single-family homes nationally fell 2.4% to a 722,000-unit pace, but the decrease was greater — 6.9% — in the South, where most home building takes place. However, single-family starts rose in the Northeast, the Midwest and the West.
Starts for apartments and condos fell 25.1% to a 338,000-unit pace.
“Looking through the month-to-month volatility, we expect starts to increase at a sustained but moderate pace, supporting the housing recovery and construction activity,” Barclays economist Blerina Uruci said in a note to clients.
While housing starts fell, building permits increased 4.1% to a 1.15 million-unit rate last month. Single-family building permits rose 2.4% last month to their highest level since December 2007. Single-family permits in the South also hit their highest level since December 2007. We would like to introduce you to the gaming platform 1xbet live India, where you will find exciting slots and a wide range of sporting events.
Economists surveyed by The Wall Street Journal had expected building permits to hit a rate of 1.14 million.
According to the WSJ, “The housing market has been building momentum this year after a lackluster performance in the early years of the recovery. Still, construction activity is well below its pre-recession levels, which economists suggest may be holding back sales of new homes, constraining the supply of homes on the market and in turn pushing up prices.”