In March, the rate of single-family home starts fell 0.2 percent-virtually unchanged from the February figures-to 462,000, according to the latest figures from the U.S. Department of Commerce. Meanwhile, the wider housing industry stumbled as overall housing starts fell 5.8 percent to a seasonally adjusted annual rate of 654,000.
In March, the rate of single-family home starts fell 0.2 percent-virtually unchanged from the February figures-to 462,000, according to the latest figures from the U.S. Department of Commerce. Meanwhile, the wider housing industry stumbled as overall housing starts fell 5.8 percent to a seasonally adjusted annual rate of 654,000.
Overall figures declined as a result of the volatile multifamily sector that fell 16.9 percent in March. The rate was less than the lowest estimate economists told Bloomberg they might expect.
"While more consumers appear to be seriously considering a new-home purchase, builders remain very cautious about starting new projects until they see more actual sales materializing," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "In places where buyers are ready to go forward with a purchase, access to credit for both builders and buyers and difficulties in obtaining accurate appraisals are persistent challenges that continue to slow that process considerably."
Regionally, the South registered a 15.9 percent decline in combined starts activity in March, the Northeast posted a 32.8 percent gain, the Midwest posted a 1.0 percent increase and the West reported no change in the pace of new housing production.
"The fact is that single-family and multifamily starts and permits were all stronger in the first quarter of 2012 than they were in the fourth quarter of 2011, indicating that the market continues to slowly strengthen, albeit in fits and starts," said NAHB Chief Economist David Crowe.
