Although still in better shape than last year, privately-owned housing starts took a dive in August. Meanwhile, sales of single-family homes soared.
Although still in better shape than last year, privately-owned housing starts took a dive in August. Meanwhile, sales of single-family homes soared.
The U.S. Census puts privately-owned housing starts at a seasonally adjusted annual rate of 956,000 in August, 14.4 percent below the July estimate of 1.1 million. That rate is 8 percent higher, however, than starts in August 2013.
Single-family housing starts came in at a seasonally adjusted annual rate of 643,000, or 2.4 percent below July's figure of 659,000. Units in buildings with five units or more were at a rate of 304,000, down 28 percent from July’s rate of 423,000.
Sales of new single-family homes in August increased to a seasonally adjusted annual rate of 504,000. This is 18 percent higher than in July (427,000) and 33 percent higher than August 2013 (379,000).
It’s also the highest level in six years, according to the National Association of Home Builders.
"This jump in sales activity is in line with our latest surveys, which indicate builders are seeing increased traffic and more serious buyers in the market for single-family homes," said Kevin Kelly, chairman of the National Association of Home Builders, in a statement.