–Starts Sectors: 1-Families +2.3% on Advance in West, NE
By Joseph Plocek
WASHINGTON (MNI) – The U.S. November housing starts data show
continued improvement, suggesting housing will contribute to Q4 growth.
Regional movements, as always, were more erratic than the totals.
November housing starts printed +9.3% to 685,000 units and permits
were up 5.7% to 681,000, well above expectations. These are the highest
levels since spring 2010. October starts and permits were revised a
little lower.
Starts strength was centered in 5+ units at +32.2% after a revised
-20.2% in October. But 1-family starts were still gaining at +2.3% to
447,000, and continue to advance on gains on the coasts — in the West
and Northeast regions. Single starts have returned to the higher levels
of summer.
Single-family starts are weak only in the Midwest (-14.5%) and the
South was -1.3%. The gain is +24.3% over the year in overall starts and
appears to be gathering momentum.
Permits were +1.6% for singles and +16.1% for 5+ units, and
apartment building appears to be gaining in the Northeast and West
regions. Permits for single-family units were up 5.1% in the Northeast,
flat in the Midwest, up 0.4% in the South, and up 4.7% in the West.
Completions fell 5.6% and were down both before and after seasonal
adjustment overall. Total completions in the Northeast were 49,000, down
45.6%, and a record low.
Units under construction were up 1.9%. Both this and completions
are hardly robust.
But overall the numbers show continued improvement in housing into
Q4:2011.
**Market News International Washington Bureau: (202)371-2121**
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