–October Start Pace Lowest Since 477,000 In April 2009
By Kevin Kastner
WASHINGTON (MNI) – The pace of housing starts fell 11.7% in October
to a 519,000 seasonally adjusted annual rate, well below expectations
and the lowest level since April 2009, data released Wednesday by the
Commerce Department showed.
This followed a sharp downward revision to the September rate to
588,000 from the previously reported 610,000 level.
Single-family starts fell 1.1% in October to 436,000, while
multi-family starts fell 43.5% in October based on a Market News
International calculation. Housing starts now stand 0.4% below their
year-ago level on an unadjusted basis.
Analysts had expected a rise in total starts to fall to a 590,000
seasonally adjusted annual rate.
Building permits actually rose 0.5% to a 550,000 annual rate in
October, but homes permitted but not started fell 2.3%, an indication
that builders remain cautious as the sales pace has slowed in recent
months remains weak despite recent improvement.
Housing completions fell 3.2% to a 613,000 rate, while those under
construction fell 1.8%, suggesting supply will be an issue when the
sales pace begins to improve.
The NAHB reported Tuesday that its November index of builder
sentiment rose slightly to 16 from 15 in October, still slightly below
the reading of 17 in November 2009.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
