–Aug Permits +1.8% to 569k; But 1-Fam Permits -1.2% to 401k
By Joseph Plocek
WASHINGTON (MNI) – The U.S. August housing data were better than
expected and show housing slowly recovering.
August housing starts printed +10.5% to 598,000, with gains in
multi-family units (+32.2% to 160,000 in a continuing bounce after
June’s plunge) and in 1-Family units (+4.3% to 438,000).
August permits gained 1.8% to 569,000, but the details were
weaker. Single-family permits fell 1.2% to 401,000, suggesting some
pause ahead in building. Multi-family permits fell 5.3% in the 2- to
4-unit category,pulling down the total.
Starts are at their best level since April and had their biggest
gain since November 2009, both signs of housing recovery that is being
bolstered by low rates and good affordability due to lower prices and
foreclosure supply overhang. However, starts are up a mere 2.2% over the
year and permits are down 6.7% on the period, illustrating that housing
remains depressed.
By region, starts in the Northest printed -24.3%, in the Midwest
+21.7%, in the South +7.0%, and in the West +34.3%. Summer storms might
have cut into activity in the East.
Housing completions were 603,000 in August, suggesting the pipeline
remains in balance. The Commerce Department estimated 87,000 housing
units were authorized but not started in August, almost 35,000 of which
were 5+ unit projects, suggesting credit concerns might be an issue.
Also, 444,000 overall units remain under construction.
Overall, this was a better than expected report.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
