Housing Starts Blew Away Economists’ Expectations

From a rising demand for apartments and condominiums, housing starts (NYSE:IYR) increased in September as builders (NYSE:XHB) started working on more U.S. homes than forecast. The data comes a day after we learned builder confidence unexpectedly rose as well.

The Commerce department reported that builders began work on 658,000 houses at an annual rate, rising 15 percent from August; it is the greatest number since April 2010. In a Bloomberg News survey, it had projected 590,000 homes.

Also contributing to September’s positive numbers was multifamily home starts. It reached a high last seen in October 2008.

However, causing some concern was building permits, which declined to a  five-month low. These numbers showed that foreclosures are contributing to the unsold home supply and declining property values may stagnate developers.

Don’t Miss: Here’s a New Problem for the US Housing Market.