–Single-Family Start Down 6.5%, Multi-Family Up 12.4%
–Building Permits +6.8% to 812,000; Completions +7.1% to 668,000
By Kevin Kastner
WASHINGTON (MNI) – The pace of housing starts fell 1.1% in July to
a 746,000 seasonally adjusted annual rate, only slightly below
expectations and following a solid rise in the previous month, data
released Thursday by the Commerce Department showed.
The July decline followed downward revisions to the pace of starts
in May and June. Analysts had expected a rise in total starts to a
750,000 seasonally adjusted annual rate in July.
Despite the monthly drop, housing starts were still up 24.5%
year/year prior to seasonal adjustment, showing substantial improvement
from a year earlier.
In addition, the National Association of Home Builders monthly
housing market index continued to trend higher when its August data was
released on Wednesday.
The July decline in housing starts was entirely due to a 6.5%
decline in single-family starts. This followed a 4.7% rise in June.
Single-family starts were still up 20.7% from a year ago before seasonal
adjustment.
Multi-family starts rose 12.4% to 244,000 in July, and were up
33.7% year/year before seasonal adjustment.
Building permits jumped 6.8% to an 812,000 annual rate in July
following a 3.1% rise in June. The July rate was the highest since
August 2008, when the rate hit 858,000 and the single-family rate of
513,000 was the highest since March 2010.
In addition to the rebound in permits, the unadjusted number of
homes permitted but not started rose 3.3% in July and were up 10.2%
year/year, an indication that builders are preparing to increase
activity.
Housing completions rose 7.1% to a 668,000 annual rate in July, the
highest rate since June 2010. Those under construction rose 1.2% to
489,000 and were up 17.4% year/year before adjustment, suggesting that
the supply of new homes should rise further in the next few months.
** MNI Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
