In another positive sign that the health of the new homes market is beginning to mend, construction activity in April showed a hefty leap from a year prior, with gains in permits, housing starts, and home completions.
The data, released Wednesday by the Commerce Department, showed a 30 percent leap in housing starts from April 2011, as well as a nearly 21 percent rise in home completions. Building permits issued—a forward looking indicator—rose by 24 percent from April of last year.
With last year being widely recognized as one of the poorest years on record for new home builders, beating 2011′s grim statistics is a huge milestone for the industry, which in 2012 has been gaining traction toward stabilization. Builder confidence surveys show that home builders are feeling more optimistic about future sales and the success of new projects, and increasing employment (as well as signs of economic recovery and record-low mortgage rates) is bolstering the pool of prospective buyers.
The seasonally-adjusted annual rate of construction starts in April settled at 715,000. While the number is roughly half of the 1.5 million units/year pace that analysts consider healthy, the April number outpaced analyst and expert estimates, which on average called for a rise to 685,000.
Figures for new home sales will be released next week.
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