New home construction activity in June on the rise

New construction dn-3

The U.S. Census Bureau and US Department of Housing and Urban Development (HUD) issued their report on New Residential Construction for June 2012 showing an increase in single-family home building permits from the year before of 19.7 percent and a 21.7 percent increase in new home starts for the same period.

Highlights from the June 2012 Report:

  • Building permits issued for single-family residences were at an annual rate of 493,000 homes which is a 0.6 percent increase from the prior month and an increase of 19.7 percent from a year before.
  • Housing starts for single-family residences were at an annual rate of 539,000 which is a increase of 4.7 percent from the prior month and an increase of 21.7 percent from a year before.
  • Homes completed were at an annual rate of 470,000 homes, which is an increase of 1.3 percent from the prior month and an increase of 3.5 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 the month, there were 47,800 permits issued for new homes compared with 41,500 the same month of the prior year.
  • For the month, there were 50,200 new homes started compared with 44,800 the same month of the prior year.
  • For the month, there were 42,000 new homes completed compared with 39,700 the same month of the prior year

New home construction is definitely trending upward but the pace at which it is increasing over last year has slowed from last month…this may be somewhat weather related or could an indication that the new home market could be losing a little steam, we will have to see what happens over the next couple of months.

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