WASHINGTON — Single-family home construction posted a modest rebound in April, raising hopes that the three-year slide in housing is leveling off. But a bulging supply of unsold homes, record levels of foreclosures and still-falling home prices suggest a sustained recovery isn’t likely until next spring at the earliest.
The Commerce Department said home and apartment construction fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units. That’s the lowest pace on records going back a half-century.
New building permit applications dropped 3.3 percent to an annual rate of 494,000, also marking a record low.
"I think we have probably reached the low point for this housing crash, but I don’t expect us to come roaring back,” said Mark Zandi, chief economist at Moody’s Economy.com.
All of last month’s weakness came in the volatile multifamily part of construction. By contrast, single-family construction and permits both rose, which economists took as a hopeful sign that this bigger sector of home construction was stabilizing.
That would be crucial for the health of the broader economy.
A healthy home market will be necessary to feed an economic recovery.
A glut of housing
The supply of unsold existing homes at the end of March fell 1.6 percent from a month earlier to 3.7 million, according to the National Association of Realtors, but still remained at elevated levels. With sales sluggish, it would take nearly 10 months to rid the market of those properties, compared with about 6.5 months in 2006, Realtors data shows.
The government report Tuesday showed construction of single-family homes rose 2.8 percent in April to an annual rate of 368,000. That followed a 0.3 percent gain in March and no change in February.
by the associated press
The Commerce Department said home and apartment construction fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units. That’s the lowest pace on records going back a half-century.
New building permit applications dropped 3.3 percent to an annual rate of 494,000, also marking a record low.
"I think we have probably reached the low point for this housing crash, but I don’t expect us to come roaring back,” said Mark Zandi, chief economist at Moody’s Economy.com.
All of last month’s weakness came in the volatile multifamily part of construction. By contrast, single-family construction and permits both rose, which economists took as a hopeful sign that this bigger sector of home construction was stabilizing.
That would be crucial for the health of the broader economy.
A healthy home market will be necessary to feed an economic recovery.
A glut of housing
The supply of unsold existing homes at the end of March fell 1.6 percent from a month earlier to 3.7 million, according to the National Association of Realtors, but still remained at elevated levels. With sales sluggish, it would take nearly 10 months to rid the market of those properties, compared with about 6.5 months in 2006, Realtors data shows.
The government report Tuesday showed construction of single-family homes rose 2.8 percent in April to an annual rate of 368,000. That followed a 0.3 percent gain in March and no change in February.
by the associated press
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