Housing Starts Up 16.5% Since October 2010

After seeing a big increase in September, overall housing starts in October-including single-family units and multi-family units-were at a seasonally adjusted annual rate of 628,000, 0.3 percent below the revised September estimate of 630,000, but 16.5 percent above the October 2010 rate of 539,000, according to the U.S. Department of Commerce.

Meanwhile, single-family housing starts in October were at a rate of 430,000, or 3.9 percent above the revised September figure of 414,000 and 0.9 percent below the October 2010 rate of 434,000.

"The government's numbers for October housing production are very much in keeping with what home builders have been telling us in our recent surveys," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB) and a home builder from Reno, Nev. "While we still have a long way to go toward a recovery, some signs of hope are emerging in certain markets where economic and job growth is occurring and where foreclosures have not been an overwhelming obstacle."

"The three-month moving averages for both housing production and permitting activity have been gradually rising since this spring, which is consistent with our forecast for slow improvement in market conditions through the end of this year and a positive sign that a more solid recovery will begin to take hold in 2012," said NAHB Chief Economist David Crowe. "That said, the improvements we are seeing are still limited to scattered local markets where economies are improving, and obstacles such as tight credit conditions for builders and buyers, appraisal issues stemming from new homes being compared to distressed properties, and consumer concerns about job security are definitely slowing the progression of both a housing and economic recovery."