Jeff Adams Real Estate Housing Report Starts Jump 15.7% in July In a sign that builders are reaction more confident in the housing market, groundbreakings on new house rose 15.7% in July over the previous month.
Housing starts stood at a seasonally adjusted yearly rate of 1.093 million in July, the strongest level the U.S. has seen in 7 months. The figures, released Tuesday by the U.S. Commerce Department of, reverse a 2-month refuse in groundbreakings on new homes, and correlate good with data released Monday that shows builder confidence up 2 points in August.
While the month-over-month jump is fairly strong, the change from the prior year is even stronger. July home starts were 21.6% higher than their level in July 2013, when they stood at an annual rate of 898,000. July numbers were also far better than economist’s prospect. Ahead of Tuesday’s release, economists surveyed by Bloomberg estimate July starts of just 963,000 units.
This week’s area for surprising numbers, but healthy reversal after the prior month’s unsatisfactory home construction data. In June, home starts dropped 9.3% from the prior month, while building permit were down 4.3%. New home sales figures were also low in June, down 8.2% from May’s levels. However, sales of existing-homes in June hit their maximum pace since October 2013.
Building permit application data released Tuesday suggest that builders plan to keep raising their pace over the coming months. In July, application for building permits increased 8.1% from the June figures, to 1.052 million units. That level is 7.7% above the July numbers one year earlier.
July’s point in new construction and the raise in permits is the shot in the arm that the real estate industry was looking for, said Quicken Loans Vice President Bill Banfield of Tuesday’s report in a report. Now that construction is more in line with housing builder confidence, the finish of the lull that has been holding down the market since the beginning of the year may lastly be here.
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