Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

US April Housing Starts Up 2.6%

05/16/2012 | 08:46am US/Eastern
========================================================== 
 U.S. Housing Starts       Apr     Mar   ! Consensus:    ! 
 Total Starts:            +2.6%   -2.6%r !       +4.7%   ! 
 Single-Family:           +2.3%   +2.3%r ! Actual:       ! 
                                         !       +2.6%   ! 
========================================================== 
 
   By Eric Morath and Alan Zibel 
   Of  
 

U.S. home building grew in April, the latest sign that the recovery may be strengthening in the long-struggling market.

Home construction increased 2.6% from March to a seasonally adjusted annual rate of 717,000, the Commerce Department said Wednesday. Year-over-year, starts were up nearly 30%.

Economists surveyed by Dow Jones Newswires had forecast April's housing starts would grow to a seasonally adjusted annual rate of 685,000. That would have been a 4.7% jump from the prior month's previously reported figures. March starts, however, were revised significantly upward to a rate of 699,000 starts from a previously reported 654,000. The newly stated data reflects a 2.6% decline from February.

Construction of single-family homes, which made up 69% of housing starts last month, grew 2.3% in April and was up 18.8% from a year ago. Meanwhile, multifamily homes with at least two units increased by 3.2% in April.

In a speech Tuesday, Federal Reserve Gov. Elizabeth Duke cited several positive signs for the housing market, including stabilization in home prices and a decline in newly delinquent borrowers. In addition, she said that readings of housing construction activity have been "somewhat encouraging" as housing starts and building permits have increased from the depths of the bust.

This year's home construction figures, while up from a low of 478,000 in April 2009, are still well below the historical average. Builders have started construction on about 1.5 million new homes per year since 1959.

The number of new housing permits, an indication of future construction, fell by 7.0% to annualized level of 715,000 in April after reaching 769,000 the prior month, the highest rate since September 2008. Economists had forecast permits to drop to 730,000.

Still, builders' confidence in the market is growing. The National Association of Home Builders' May housing market index, released Tuesday, reached the highest level in five years as more potential buyers appeared confident that the housing market has hit bottom. The Commerce data showed that new building was mixed across four U.S. regions. Starts were up 11.6% in the South and grew 6.7% in the Midwest. Starts fell by 20.7% in the Northeast and were down 8.1% in the West. Actual housing starts, calculated without seasonal adjustments, increased to 64,200 in April from an upwardly revised 57,400 in March. Lumber and commodities markets watch those numbers closely to gauge demand.

The Commerce report can be found at http://www.census.gov/construction/nrc/pdf/newresconst.pdf

-By Eric Morath and Alan Zibel, Dow Jones Newswires; 202 862 9279; eric.morath@dowjones.com 
 

React to this article
Latest news
Date Title
2m ago U.S. judge rejects HP settlement in Autonomy shareholder litigation
4m ago JAZZ PHARMACEUTICALS : Receives FDA Approval For Intravenous Administration Of Erwinaze® (asparaginase Erwinia chrysanthemi)
4m ago IDEMITSU KOSAN : Oil distributor Idemitsu mulls acquiring rival Showa Shell
8m ago OXFORD CITY FOOTBALL CLUB : OTCQB:OXFC) Futsal Youth Academy Teams Looking To Sweep The Premier League Grand Finals
8m ago ARCBEST : Names New CFO, Creates Innovation Chief Role
9m ago FORTRESS INVESTMENT : MICROFINANCIAL, INC. INVESTOR ALERT: Faruqi & Faruqi, LLP Announces the Investigation of MicroFinancial, Inc. Over the Proposed Sale of the Company to Fortress Investment Group - MFI
9m ago PETSMART : INVESTOR ALERT: Faruqi & Faruqi, LLP Announces the Investigation of the PetSmart, Inc. Board of Directors in relation to the Proposed Sale of the Company to BC Partners - PETM
9m ago PANTRY : SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Announces the Investigation of The Pantry, Inc. Over the Proposed Sale of the Company to Alimentation Couche-Tard Inc. - PTRY
9m ago RIVERBED TECHNOLOGY : INVESTOR ALERT: Faruqi & Faruqi, LLP Announces the Investigation of Riverbed Technology Inc. Over the Proposed Sale of the Company - RVBD
9m ago PARAMOUNT GOLD AND SILVER : SHAREHOLDER ALERT: Faruqi & Faruqi, LLP Announces the Investigation of Paramount Gold and Silver Corp. Over the Proposed Sale of the Company to Coeur Mining, Inc. - PZG
Latest news
Advertisement
Hot News 
DENDREON : Entry into a Material Definitive Agreement, Change in Directors or Principal Officers, Other Events, Financial Statements and Exhibits (form 8-K)
DIXONS CARPHONE : *exane bnp raises dixons carphone price target to 510 (450) pence - 'outperform'
BERKELEY MINERAL RESOURCES : Obsidian IR
Anchor BanCorp Wisconsin Inc. to Join Multiple Russell Indexes
ATLANTIS RESOURCES : Makes First MeyGen Facility Drawdown
Most Read News
17m ago Obama vows U.S. response to North Korea over Sony cyber attack
1h ago U.S. labor agency files complaints against McDonald's
1h ago SYSCO : Poised to Complete US Foods Deal (Report)
1h agoDJU.K. Police Arrest Man in Forex Market Manipulation Probe -- Update
48m ago Former Chrysler Group expands Takata driver-side air bag recall globally
Most recommended articles
1m ago U.S. judge rejects HP settlement in Autonomy shareholder litigation
17m ago Obama vows U.S. response to North Korea over Sony cyber attack
26m agoDJTwo Fed Dissenters Air Their Opposing Views
29m agoDJGoogle Sues Mississippi Over Campaign to Restrict Searches
38m ago Boeing on target for 787 deliveries, though costs are a concern
Dynamic quotes  
ON
| OFF