Builders broke ground on new single-family homes at an annual pace of 535,000 in August, the highest rate since April 2010, when buyers rushed to take advantage of federal tax credits designed to stimulate the market, the Commerce Department reported Sept. 19.
“The housing market has stabilized and the recovery is well under way,” Lennar Chief Executive Officer Stuart Miller said in the statement. “Low mortgage rates, affordable home prices, increased buyer confidence and an extremely favorable rent-to-own comparison are driving growth in each of our markets.”
Of course, there’s a bit of a problem here: even with this surge in construction, the results are simply awful compared to past times. Here’s what the new house market looked like in 2007, a “dismal year” for construction:
WASHINGTON (MarketWatch) — Construction on new homes fell 14% in December to a seasonally adjusted annual rate of 1.01 million, the slowest building pace in more than 16 years, the Commerce Department reported Thursday.
The gruesome figures show builders are cutting back on production at a furious pace to try to work off a large backload of unsold homes. The bad news is that housing is still contracting; the good news is that the sooner builders stop adding supply to overbuilt markets, the sooner the housing market can recover.
National housing starts were lower than the 1.12 million pace expected by economists surveyed by MarketWatch. The pace of housing starts for October and November were also revised lower.
Commerce DepartmentCompared with December 2006, monthly housing starts were off 38%, the biggest year-over-year decline since 1980.
In December, single-family starts fell 3% to 794,000, the lowest monthly pace in 16 years.