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New home construction in November inches up;  Curent pace slightly ahead of record-low

New construction dn-3

The last couple of months I have said that, “unless something changes dramatically, 2011 will hit a new record low of new home starts. Well, the actual numbers this year will still most likely be a record low, but at least the rate of new home starts for November has now inched above the record low New home starts in November were up 2.3 percent from the prior month with the seasonally adjusted annual rate inching its way up to 447,000 homes, just slightly above the all-time low of 445,200 new home starts in 2009.

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for November 2011 showing an increase in single-family home building permits from the month before of 1.6 percent and a 2.3 percent increase in new home starts compared to the month before.

Highlights from the November 2011 Report:

  • Building permits issued for single-family residences were at an annual rate of 435,000 homes which is 1.6 percent above the prior month and an increase of 3.6 percent from a year before.
  • Housing starts for single-family residences were at an annual rate of 447,000 which is an increase of 2.3 percent from the prior month and a decrease of 1.5 percent from a year before.
  • Homes completed were at an annual rate of 440,000 homes, which is a decrease of 0.7 percent from the prior month and an increase of 1.9 percent from a year before.

As I say every month, we need to remember that all the numbers above are “seasonally adjusted” annual rates and the year over year comparisons are just comparing the numbers for the current month versus the a year before. Another way I like to look at where things stand is to simply look at the year to date data; actual numbers, not seasonally adjusted, compared to last years ytd numbers at this same time. I think this may give a little better comparison so those numbers are below:

  • For 2011 there have been 384,400 permits issued for new homes compared with 416,400 this time year for a decrease of 7.7 percent.
  • For 2011 there have been 399,400 new homes started compared with 444,500 this time last year for a decrease of 10.0 percent.
  • For 2011 there have been 400,000 new homes completed compared with 452,300 this time last year for a decrease of 11.6 percent.

 

 

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