Housing starts accelerate in November
Home builders broke ground on new residences at a faster clip in November than in October, a positive sign for the housing market and the residential real estate industry.
Housing starts rose 8.9% from the prior month to a seasonally adjusted annual rate of 574,000 units, the Commerce Department reported Wednesday. However, that figure represented a 12.4% decline from November 2008.
The jump can be attributed in part to a shift in weather patterns, Patrick Newport, U.S. economist for Global Insight, said in a note to clients. He noted that although last month was the third-warmest November in 115 years, October was the third-coolest October on record, according to the National Oceanic and Atmospheric Administration.
“A swing in weather patterns played a role in the spike,” he wrote.
In the West, housing starts were up 1.9% from the previous month to a seasonally adjusted annual rate of 105,000 units, a 23.4% drop from November 2008.
In October, the construction of new homes also fell unexpectedly as builders put on the brakes ahead of the initial Nov. 30 expiration of a federal tax credit for first-time home buyers.
Analysts said then that builders were expressing trepidation that home purchasing might slow without the incentive.
In November, the government extended the $8,000 credit for first-time buyers and expanded it to include a $6,500 credit for some buyers who already own a home.
Building permits in November increased 6% over October to a seasonally adjusted annual rate of 584,000 but declined 7.3% from November 2008.
Housing completions in November rose 8.7% over the previous month to a seasonally adjusted annual rate of 810,000. That was a 25.3% decline from November 2008.
