As existing home sales in the US weakened due to limited inventory, home building-related activity improved in February, albeit modestly, said the National Association of Home Builders Eye on Housing Thursday.
Builder sentiment, as measured by the NAHB/Wells Fargo Housing Market Index stands at a level of 58 as of March, consistent with a generally positive outlook tempered by concerns regarding supply-side constraints. Buyer traffic is up, but expectations concerning future sales waned.
Housing starts improved in February, increasing 5.2 per cent to an annual pace of 1.178 million single-family and multifamily residences, according to government estimates. The increase was broad based with single-family starts up 7.2 per cent over January to the fastest rate since November 2007. Total permits were down 3.1 per cent on a monthly basis, but the decline was entirely in the multifamily sector.
US Home Sales
Similarly, new single-family home sales were up slightly in February, increasing 2 per cent nationwide to an annual rate of 512,000, according to the NAHB Thursday. Consistent with the ongoing, modest recovery in building, new home inventory increased to 240,000 – a 5.6 months’ supply – according to Census estimates. However, only 53,000 of these homes were completed, ready-to-occupy residences.