U.S. housing starts up in June

WASHINGTON – Housing starts in the United States saw “substantial” growth in June, with homebuilders looking toward improved market conditions as a sign that the market will be able to absorb new homes, according to a data analysis released by the National Association of Home Builders.
The U.S. Commerce Department announced that June housing starts jumped 3.6 percent, rising to a seasonally adjusted annual rate of 582,000 units. In May, the seasonally adjusted annual rate had been 532,000 units.
NAHB hailed the increase, pointing toward the expiration of the first-time homebuyer tax credit. It expires “on Dec. 1 [and] and is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” NAHB Chairman Joe Robson said. “However, there is still much concern about the difficulty of financing new-home production and continuing weakness in the job market.”
The report “was in keeping with our forecasts for some glimmers of improvement on the single-family side in the second quarter and also with the results of our latest builder surveys,” NAHB Chief Economist David Crowe said in a statement. “Many remain very cautious, however, in the face of the severe tightening of instances of low appraisals tied to improper use of distressed properties as comps, both of which threaten to derail a housing and economic recovery forward.”
NAHB also last week reported that builder confidence had hit its highest level since September 2008.
The National Association of Home Builders, a trade group founded in 1942, produces in-depth economic analyses of the home building industry based on private and government data. To learn more, visit www.nahb.org.