jeudi 16 avril 2015
US home construction preview
Posted on 04:37 by nice news
The Commerce Department reports on March U.S. home construction Thursday at 8:30 a.m. Eastern.
HOME CONSTRUCTION REBOUNDS: Economists expect that housing starts surged in March, climbing 16 percent to a seasonally adjusted annual rate of 1.04 million, according to a survey by data firm FactSet.
That would claw-back most of the steep drop in February, when housing starts plunged 17 percent to a rate of 897,000. Freezing temperatures and snow storms disrupted construction in February, shutting down construction sites and keeping prospective buyers marooned indoors.
SPRING BUYING SEASON: March traditionally marks the start of the spring home buying season, when more people flood into the market and sales increase. But the relatively modest pace of new construction and few homes being listed for sale have kept inventories tight, limiting the potential for sales to rise. Homebuilders have increasingly focused on two key markets: wealthier buyers and apartment complexes, because increasingly expensive houses have priced many out of the market and caused them to rent.
The relatively sluggish pace of house construction reflects the aftermath of the 2008 financial crisis and housing bust, when mortgage defaults skyrocketed and home prices cratered.
While single-family starts remain close to historically low levels, apartment construction has been running at an above average pace. Builders broke ground on 341,700 multi-family structures last year, a 16 percent increase compared with 2013, according to the Commerce Department.
That reflects both the fragile six-year recovery and the growing preference among college-educated millennials for city living, according to Michelle Meyer, an economist at Bank of America Merrill Lynch.
"When economic times are tough, people tend to downsize and move closer to work in order to minimize travel expenses," Meyer said in a recent client note. "There
HOME CONSTRUCTION REBOUNDS: Economists expect that housing starts surged in March, climbing 16 percent to a seasonally adjusted annual rate of 1.04 million, according to a survey by data firm FactSet.
That would claw-back most of the steep drop in February, when housing starts plunged 17 percent to a rate of 897,000. Freezing temperatures and snow storms disrupted construction in February, shutting down construction sites and keeping prospective buyers marooned indoors.
SPRING BUYING SEASON: March traditionally marks the start of the spring home buying season, when more people flood into the market and sales increase. But the relatively modest pace of new construction and few homes being listed for sale have kept inventories tight, limiting the potential for sales to rise. Homebuilders have increasingly focused on two key markets: wealthier buyers and apartment complexes, because increasingly expensive houses have priced many out of the market and caused them to rent.
The relatively sluggish pace of house construction reflects the aftermath of the 2008 financial crisis and housing bust, when mortgage defaults skyrocketed and home prices cratered.
While single-family starts remain close to historically low levels, apartment construction has been running at an above average pace. Builders broke ground on 341,700 multi-family structures last year, a 16 percent increase compared with 2013, according to the Commerce Department.
That reflects both the fragile six-year recovery and the growing preference among college-educated millennials for city living, according to Michelle Meyer, an economist at Bank of America Merrill Lynch.
"When economic times are tough, people tend to downsize and move closer to work in order to minimize travel expenses," Meyer said in a recent client note. "There
US home construction preview
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