Tuesday, March 19, 2013

Housing Starts Up Again and Strongest Since 2008 ... Still Less than 50% of Their Bubble Peak

Housing is on the mend. That said, it's still a very long way below its peak of several years ago. Still it's good news for a recovering U.S. economy.

U.S. housing starts rise 0.8% in February has the breaking news:

"Construction on new U.S. homes nudged up 0.8% in February to a seasonally adjusted annual rate of 917,000, with modest gains for single-family homes and apartments, as longer-term trends also signaled a housing market that continues to strengthen, according to data released Tuesday by the U.S. Department of Commerce. . . .

Looking at less volatile longer-term trends, starts in February were up 28% from the same period in the prior year, but remain below a bubble peak of almost 2.3 million in 2006.

Starts for single-family homes rose 0.5% in February to a rate of 618,000, the highest level since June 2008. Meanwhile, starts for structures with at least five units increased 0.7% to a rate of 285,000.

The government also reported Tuesday that building permits, a sign of future demand, rose 4.6% in February to a rate of 946,000, also hitting the highest rate since June 2008."

Summing Up

While housing's cup by no means is running over, it's getting to be half full.

And the trend is favorable.

Thanks. Bob.

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