–Single-Family Start Down 1.0%, Multi-Family +77.7%
–Building Permits -10.4% to 562,000 After December Surge
–Completions Hit Another Record Low
By Kevin Kastner
WASHINGTON (MNI) – The pace of housing starts jumped 14.6% in
January to a 596,000 seasonally adjusted annual rate, well above
expectations, data released Wednesday by the Commerce Department showed.
This followed downward revisions in both November and December.
Analysts had expected a smaller rise in total starts to a 540,000
seasonally adjusted annual rate.
Single-family starts fell 1.0% in January to 413,000, while
multi-family starts jumped 77.7% in January based on a Market News
International calculation. Housing starts now stand 2.6% below their
year-ago level on an unadjusted basis.
Building permits fell 10.4% to a 562,000 annual rate in January
following a 15.3% surge in December on special factors related to a
change in permits regulations.
The number of homes permitted but not started fell 4.9% in January,
an indication that builders remain cautious as the new home sales pace
remains soft despite recent improvements.
Housing completions fell 9.5% to a record low 512,000 rate, while
those under construction held steady at a tied record low of 427,000,
suggesting supply will be an issue when the sales pace begins to
improve.
The NAHB reported Tuesday that its February index of builder
sentiment held steady at 16, slightly below the reading of 17 in
February 2010.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
