–Single-Family Start Up 1.7%, Multi-Family Up 51.3%
–Building Permits -5.0% to 594,000; Completions +2.1% to 647,000
By Kevin Kastner
WASHINGTON (MNI) – The pace of housing starts surged 15.0% in
September to a 658,000 seasonally adjusted annual rate, well above
expectations and the strongest pace since April 2010, data released
Wednesday by the Commerce Department showed.
The September jump in housing starts was mostly due to a 51.3% rise
in multi-family building. More specifically, starts of homes with more
than 5 units rose 53.4% to a 227,000 annual rate, the strongest pace
since September 2008.
Single-family starts rose 1.7% to 425,000 in September, but were
still down 4.9% a year ago after seasonal adjustment. By comparison,
total starts were up 10.2% year/year seasonally adjusted and 13.4%
before seasonal adjustment.
The September spike followed upward revisions to the pace of starts
in July and August. Analysts had expected a rise in total starts to a
590,000 seasonally adjusted annual rate in September.
Building permits fell 5.0% to a 594,000 annual rate in September
following a 4.0% rise in August.
In addition to the permits decline, the number of homes permitted
but not started fell 9.2% in September, an indication that builders
remain cautious as the new home sales pace remains soft despite recent
improvements.
Housing completions rose 2.1% to a 647,000 rate, while those under
construction rose 0.7% to 412,000, suggesting that the supply of new
homes should rise further in the next few months.
The NAHB reported Wednesday that its October index of builder
sentiment rose to a reading of 18 from 14 in September, but builder
confidence remains very low.
** Market News International Washington Bureau: 202-371-2121 **
[TOPICS: MAUDS$,MT$$$$,M$U$$$,MAUDR$]
