Starts Fall Slightly in May

Single-family housing starts fell for the third consecutive month in May despite reports indicating strong demand for housing across the nation.According to Census Bureau data, single-family starts fell less than 1% in May to a seasonally adjusted annual rate of 1.228 million. "Single-family starts remained virtually unchanged in May, although they did fall slightly, but what's more important is that activity is up 12% from last May," said Mike Karliner, an economist at the National Association of Home Builders. Moreover, the NAHB's housing market index rose to an all-time high of 71 in June -- a further indication that housing activity remains strong in many sections of the country. Any score above 50 indicates that more builders thought conditions were good than thought they were poor in their local market. "The demand for housing is actually exceeding the supply in many areas," Mr. Karliner added. Meanwhile, total starts, including multifamily, fell 1% in May to 1.530 million -- a slight drop from April's revised rate of 1.541 million -- but 9% above the May 1997 rate of 1.404 million.