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.
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