Nationally, Single-Family Construction Continues to Stabilize

Single-family housing starts rose 1.5% in January after a 3% decline in December as construction activity continues to show signs of stability at higher levels than a year ago. The U.S. Census Bureau reported that single-family housing starts rose to a seasonally-adjusted annual rate of 484,000 in January, up from a 477,000 rate in December. The January rate rose 35% compared to a year ago. Multifamily starts jumped 18% in January to 100,000 units but compared to the same month a year ago were down nearly 18%. The National Association of Homebuilders reported that builder confidence is improving due to favorable homebuying conditions, the homebuyer tax credit, and signs the job market is getting better. "As a result, builders are slightly more optimistic that the housing recovery is finally beginning to take root," said NAHB chairman Bob Jones. Weiss Research real estate analyst Mike Larson noted that the supply of newly constructed homes is at the lowest level since the early 1970s. But don't expect a "vigorous upturn" in construction while the supply of "used" and foreclosure houses remains elevated. "Until that supply is exhausted, construction activity will remain muted," Mr. Larson said.