Housing starts down, but pace remains strong

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Housing starts decreased slightly to a seasonably adjusted annual rate of 1.97 million units in April, the Commerce Department reported May 18. |ret||ret||tab|

According to a news release from the National Association of Home Builders, that pace was 2.1 percent below March's revised rate of 2.01 million units, but 20.3 percent above April 2003.|ret||ret||tab|

"Builders remain confident about the market as demand for single-family homes and condominiums remains strong, even as mortgage rates begin to edge up," said Bobby Rayburn, president of the National Association of Home Builders, in the release.|ret||ret||tab|

According to NAHB Chief Economist David Seiders, momentum in the housing market is as strong as it's ever been.|ret||ret||tab|

"Housing starts in March were boosted by an unusual swing in weather conditions, and the April pace actually was above the average for the first quarter ofthe year," Seiders said.|ret||ret||tab|

"On the financing front, mortgage rates have risen from their March lows but remain quite favorable on a historical basis. Furthermore, stronger growth in jobs and income is supporting housing demand, and that pattern should continue throughout the year."|ret||ret||tab|

Single-family housing starts decreased 0.6 percent to a pace of 1.61 million units for April. |ret||ret||tab|

This was an 18.1 percent increase over the April 2003 pace.|ret||ret||tab|

Multifamily housing starts decreased 8.4 percent to a seasonally adjusted rate of 359,000 units for the month. |ret||ret||tab|

The multifamily pace was 31 percent higher than it was a year ago.|ret||ret||tab|

The construction pace for new homes and apartments increased across all regions except the West, where it fell by 13.7 percent.|ret||ret||tab|

For the month, issuance of total building permits increased 1.2 percent from March to a seasonably adjusted rate of 2 million units. This was 11.2 percent above April 2003. |ret||ret||tab|

Single-family permit issuance decreased by 0.7 percent from the March pace, while multifamily permits issued were up 8.3 percent.|ret||ret||tab|

"Buyer demand is strong, inventories of unsold houses are lean, and there's a sizeable backlog of unused building permits," said Seiders. |ret||ret||tab|

"This bodes well for housing production in the coming months."|ret||ret||tab|

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