New home construction across the nation slipped slightly in July, the U.S. Commerce Department said Thursday.
The report came just one day after the National Home Builder Association noted that builder confidence rose 2 percentage points to 37, an indicator that shows improving enthusiasm the long-hobbled market is on the path to some state of normalcy.
Privately-owned housing starts last month fell 1.1 percent below the revised June estimate of 754,000, but tracked at a level that was 21.5 percent higher than July 2011 rate of 614,000. Single-family housing starts in July were at a rate of 502,000, or 6.5 percent below the revised June figure of 537,000.
Builders say a slim supply of standing home inventory, low mortgage rates and pent-up demand have brought new home buyers back into the market.
Confidence could be reflected by the new builder permit activity.
It was up for July, with new permits clicking in at 6.8 percent above the revised June rate of 760,000 and 29.5 percent above the July 2011 estimate of 627,000.
Completed privately-owned housing was 7.1 percent above the revised June estimate of 624,000 and 5.4 percent above the July 2011 rate of 634,000. Single-family home completions were 5.9 percent above the revised June figure of 476,000.
Here’s how the West Coast fared:
Single family housing starts fell 9 percent below the revised June estimate of 122,000, but 26 percent higher than the July 2011 rate of 88,000.
Building permits for single-family homes authorized in July, 120,000, were up 8.1 percent from June, and 44.6 percent above the July 2011 estimate of 83,000. Single-family home completions fell 3.3 percent from the revised June estimate of 91,000, but were 6 percent above the July 2011 estimate of 83,000.
Source: http://blog.pe.com/real-estate/2012/08/16/real-estate-new-residential-construction/
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