Key Highlights
- According to new US Census Bureau report, new home construction jumped +22% m/m in July
- New home construction also jumped +23.4% y/y
We learned last week that homebuilder confidence has soared and now we learn that new home construction exploded in July. He US Census Bureau just released the latest figures on new home construction for July…an eye-popping +22.6% jump of a seasonally adjusted annual rate of 1.496M!
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In addition, new home construction for July increased a whopping +23.4% y/y.
Doug Duncan, chief economist with Fannie Mae, said, “Single-family new home sales in recent months have outpaced their usual relationship to starts. Homebuilders have supported sales by drawing down existing inventories of homes previously started. An acceleration in new construction was therefore expected in order to rebalance this relationship in light of continued buyer demand.”
Both building permits and single-family authorizations also increased in July by +18.8% and 17% respectively above the revised June rate.
Mike Fratantoni, senior vice president and chief economist with the Mortgage Bankers Association (MBA), added to Duncan’s welcomed remarks. “Homebuilders picked up the pace of construction again in July, with both single-family and multifamily starts up strongly. Homebuyer demand remains robust, inventories are tight, and there is a need for new units to keep the pace of sales going. On another positive not, housing permits were running at an even faster pace in July, indicating that builders will continue to increase production in the months ahead.”
Bottom line, according to Fratantoni, “Housing is certainly one of the bright spots in the struggling economy.”
Thanks to the US Census Bureau, Mortgage Bankers Association and HousingWire.
Also read: Summer Home Buying Ready to Take Off, Mortgage Rates Drop to Five-Month Low, NAR’s Q2 2019 Commercial Real Estate Trends and Outlook
