Housing Recovery Gains Ground As New Construction, Permits Pick Up
Source: U.S. News & World Report
Builders broke ground on more homes in February as permits for new construction surged to their highest level since 2008, yet more evidence that the housing market recovery is gaining traction.
New home construction rose almost 1 percent in February over January figures to a rate nearly 30 percent above figures reported in February 2012, the Commerce Department reported Tuesday. Meanwhile, building permits climbed almost 5 percent over January numbers, and are nearly 34 percent ahead of figures reported this time last year. Strong permit data bodes well for the spring building season, and could help juice the broader economy, experts say.
"After six years of deep slumber the giant is awakening," David Lichtenstein, chairman and CEO of The Lightstone Group based in New York City, says in an email. "We are about to see a housing bull market reminiscent of most post-recession recoveries."
That enthusiasm comes on the heels of some disappointing news on the homebuilder confidence front, which showed that builders have become increasingly negative about market conditions in recent months. According to the NAHB, confidence among builders fell for the third consecutive month in March, after posting eight months of strong gains through January.
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