Skip to main content

New Construction Permits Rise to Highest Levels in Four Years

NationalMortgageProfessional.com
Dec 19, 2012

Following an above-trend rate of production in October, nationwide housing starts slipped three percent to a seasonally adjusted annual rate of 861,000 units in November, according to newly released data from the U.S. Department of Housing & Urban Development (HUD) and the U.S. Census Bureau. Meanwhile, permits for new construction rose to their strongest level in more than four years, with a 3.6 percent gain to 899,000 units. "Many builders have reported improving conditions in their local housing markets and are increasingly optimistic about the spring buying season, but they are being very careful not to get ahead of demand," said Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "Meanwhile, tight credit conditions are still the chief obstacle to a quicker recovery." Single-family housing starts declined 4.1 percent to a seasonally adjusted annual rate of 565,000 units in November, while multifamily starts edged down one percent, to 296,000 units. "The starts report for November reflects a readjustment to a more sustainable level of production following significant gains in the previous two months," said NAHB Chief Economist David Crowe. "That said, starts in this quarter are still running well ahead of the third quarter, and we are on track for a projected 25 percent improvement in housing production for all of 2012. Moreover, the fact that issuance of building permits hit its fastest rate since July of 2008 in November is indicative of the continued, modest growth that we expect to see in new-home construction through 2013." Regionally, combined single- and multifamily starts activity was mixed in November. While the Midwest and South posted respective gains of 3.3 percent and 2.9 percent, the Northeast and West posted respective declines of 5.2 percent and 19.2 percent. Permit issuance, which can be an indicator of future building activity, rose 3.6 percent to a seasonally adjusted, annual rate of 899,000 units in November. This was due to a 10.6 percent gain to 334,000 units on the multifamily side, as single-family permits held virtually unchanged for the month, at 565,000 units. Permits rose in all but one region in November. Gains of 8.1 percent, 2.9 percent and 5.9 percent were registered in the Midwest, South and West, respectively, while a 6.2 percent decline was registered in the Northeast.
Published
Dec 19, 2012
Federal Regulators Race To Address Cryptocurrency Risks

Cryptocurrency is quickly morphing into a volatile but widely embraced innovation, and federal regulators are racing to address the potential risks to consumers and the market. 

Industry News
Sep 24, 2021
MBA Initiative Seeks To Close Racial Homeownership Gap

Says its advocacy, partnerships & connections will help increase opportunities for minority borrowers

Industry News
Sep 24, 2021
Guaranteed Rate Opens New Branch In Southwestern Michigan

Guaranteed Rate expanded its presence in Southwester Michigan, after opening a new branch in St. Joseph

Industry News
Sep 22, 2021
Chinese Property Giant Evergrande Falters, Threatening U.S. Investors

On Monday, investors across three continents dumped their stocks, mainly out of fear that the world’s two largest governments — the United States and China — would undercut the beginnings of a global economic recovery. 

Industry News
Sep 22, 2021
Compass Mortgage Expands In Four Additional States

Compass Mortgage is now licensed in Virginia, Washington, North Carolina and South Carolina.

Industry News
Sep 22, 2021
Enact Holdings Completes IPO

Genworth Financial Inc. announced the completion of the initial public offering for its subsidiary Enact Holdings Inc.

Industry News
Sep 21, 2021