Single-Family Starts Up 3%

After several months of steady decline, single-family housing starts rose 3% in June to their highest level since February, according to statistics released by the U.S. Commerce Department.[Click here to see the chart.] Government data show that single-family starts were at a seasonally adjusted annual rate of 1.250 million in June, up from May's revised rate of 1.219 million. The last time single-family starts were this high was in February when the rate stood at 1.263 million. "The latest number is consistent with what we expected," said Mike Karliner, senior economist at the National Association of Home Builders. "There is still a strong demand for housing in most portions of the country." Although the housing market remains strong, Mr. Karliner said the NAHB is still forecasting a downturn in the coming months. "We've already seen signs of a slowdown in the economy," he added. Even if a downturn occurs, the NAHB is predicting single-family starts to end the year at around 1.195 million -- the highest rate in 20 years. Total starts, including multifamily, rose 6% in June to 1.615 million. Meanwhile, the NAHB Market Index rose to 72 in July, a one-point rise. The rating for present single-family sales rose two points to 79, while the rating for expected single-family sales in the next six months rose one point to 81, the NAHB reported.