2023-04-18 13:31:00
WASHINGTON (Archyde.com) – Single-family home starts rose 2.7 percent to 861,000 in March, seasonally adjusted, the U.S. Commerce Department said on Wednesday. This is the second straight month of increase. The number of single-family building approvals also rose 4.1% to 818,000 units, suggesting that the worst of the housing market downturn is likely behind us.
Single-family homes account for the majority of residential construction.
Single-family housing starts in February were revised upward to 838,000 units from the initial forecast of 830,000 units.
“Mortgage rates have fallen from their October-November peak, helping to fuel demand and sales activity,” said Ben Ayers, senior economist at Nationwide. “On the other hand, the environment remains challenging, with high input and labor costs for builders and expensive financing options for buyers,” he said.
Single-family home starts rose 4.4% in the Northeast and 23.6% in the Midwest. Even in the densely populated southern region, it increased by 4.8%. On the other hand, it decreased by 16.0% in the West.
Single-family housing starts in March were down 27.7% from the same month last year.
The housing market is sluggish once morest the backdrop of aggressive interest rate hikes by the US Federal Reserve Board (FRB). Housing investment contracted for the seventh straight quarter through the fourth quarter of 2022, the longest since the bursting of the housing bubble triggered by the 2007-2009 global financial crisis.
But there are signs that the housing market has bottomed out. The National Association of Home Builders (NAHB)/Wells Fargo Home Builders Index, released Wednesday, rose to a seven-month high in April.
Data from the Federal Home Loan and Mortgage Corporation (Freddie Mac) show that fixed interest rates for 30-year mortgages widely used in the U.S. hit 6.27% last week, marking the peak of an uptrend that hit last fall. It is down from 7.08%, which was 7.08%.
Meanwhile, recent financial turmoil following the collapse of two local U.S. banks may prompt banks and mortgage lenders to tighten underwriting standards.
The number of apartment complexes with five or more units decreased by 6.7% to 542,000 units. However, demand for rental housing continues to underpin the situation.
Overall housing starts, including detached houses and multi-family housing, decreased by 0.8% to 1.42 million units. Market forecasts in a Archyde.com poll were for 1.4 million units.
The number of condominium construction approvals for five or more units decreased by 24.3% to 543,000 units. Overall, the number decreased by 8.8% to 1,413,000 units.
The number of unfinished housing units decreased by 3.0% to 291,000 units. The order backlog for single-family homes fell 2.3% to 130,000 units, the lowest level since February 2021, but the number of completed single-family homes increased 2.4% to 1.05 million units.
Single-family homes under construction decreased by 2.3% to 716,000 units. It was the lowest level since August 2021.
1681834122
#Singlefamily #housing #starts #March #increasing #consecutive #months #Archyde.com
