Starts Hit 5-Year High

Single-family starts rose 3% in July to their highest level in five years, according to statistics released Wednesday by the U.S. Department of Commerce.Government data show that single-family starts were at a rate of 1.306 million in July, up from 1.268 million in June. This is the highest monthly rate recorded for single-family starts since December 1993, when the rate hit 1.316 million. Year over year, single-family starts have risen more than 12% thanks to a strong housing market fueled by low interest rates and low unemployment. "This is going to be the best year for single-family starts since 1978, when we ended the year at 1.433 million," said David Seiders, chief economist at the National Association of Home Builders. "Inventories are slim and builders are just trying to keep up with the demand for housing, which accounts for these strong numbers." The NAHB's housing market index was 71 in August -- only one point below July's record-setting level -- indicating that builders across the nation are still optimistic that single-family activity will remain strong in their region. Mr. Seiders said he was forecasting 1.23 million SF starts for the year, but he said that number will have to be revised upward. "This market is remarkable," he added. "I had been looking for activity to flatten out, but the numbers continue to grow." The Commerce Department's website address is http://www.doc.gov, and the NAHB's is http://www.nahb.com.