U.S. single-family homebuilding surged to more than a 1-1/2-year high in November and could gain further momentum.
Originally Reported by Reuters
WASHINGTON, Dec 19 (Reuters) – U.S. single-family homebuilding surged to more than a 1-1/2-year high in November and could gain further momentum, with declining mortgage rates and incentives from builders likely to draw potential buyers back into the housing market.
“New residential construction activity continues to show resilience, and this is likely the result of an underlying shortage of housing units relative to the demand for housing,” said Conrad DeQuadros, senior economic advisor at Brean Capital in New York.
Single-family homebuilding soared in the Northeast, Midwest and the densely populated South. It declined in the West.
A survey on Monday showed confidence among single-family builders rebounded from an 11-month low in December. The National Association of Home Builders noted that “many builders continue to reduce home prices to boost sales.”
BUILDING PERMITS RISE
Demand for rental accommodation is also cooling, with the rental vacancy rate rising to more than a two-year high in the third quarter. Increased supply of rental housing is one of the main factors expected to drive inflation lower next year.
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Source: Black Enterprise
