Tuesday, September 21, 2010

Home construction jumps 10.5 pct in August

This might seem like a big jump, but historically seasonally adjusted rate has been 2 to 3 times the number of homes currently being built.

Construction of new homes and apartments rose 10.5 percent in August from a month earlier to a seasonally adjusted annual rate of 598,000, the Commerce Department said Tuesday. That's the highest level since April.
And the real news
Housing starts are up 25 percent from their bottom in April 2009, but are still down 74 percent from their peak in January 2006.
Building permit applications, a sign of future activity, grew by nearly 2 percent to an annual rate of 569,000.
This level of new home construction will be low, since there are many homes being foreclosed and entering the market.

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