Printer Friendly

HOUSING STARTS RISE AGAIN IN OCTOBER, REPORTS COMMERCE DEPARTMENT; ROBUST SINGLE-FAMILY MARKET DRIVEN BY FIRST-TIME HOME BUYERS

 WASHINGTON, Nov. 17 /PRNewswire/ -- Housing starts increased for the third straight month in October, reaching a seasonally adjusted annual rate of 1.396 million, the highest level since February of 1990, the U.S. Commerce Department reported today.
 "This is excellent news," said J. Roger Glunt, president of the National Association of Home Builders (NAHB). "This third consecutive monthly increase in starts shows that the housing industry continues to strengthen, particularly the market for new, single-family homes."
 Starts of single-family homes rose to a seasonally-adjusted annual level of 1.224 million, a 5.8 percent increase from September, and the highest figure since the 1.232 million reached in September of 1987.
 Total housing starts rose 2.7 percent from September and multifamily starts, as anticipated, fell 14.9 percent to 172,000, after a particularly strong showing in September that wasn't expected to be maintained.
 "The strength in the single-family market can be attributed to two factors -- low mortgage interest rates that continue to hover around 7 percent, and the decision by people in rental units to take advantage of those rates and buy their first homes," Glunt said.
 Single-family home builders remain bullish on the housing market. NAHB's latest survey of builders' attitudes, taken in early November, showed that builders' sales are improving and their optimism for the future is growing as well.
 In November, 59 percent of the builders surveyed reported good sales of single-family detached homes, up from 55 percent in October. And, 72 percent of builders said they expect sales to be good during the next six months, up from 61 percent a month ago.
 Not all regions of the country are sharing in the housing recovery. Starts increased in October in the Midwest by 13.3 percent and in the South by 2.8 percent. But in the Northeast and the West, which have been weak for several years, starts fell 9.4 percent and 2.4 percent, respectively.
 "It's clear that the Midwest and the South have been carrying the country for several months now in terms of the housing recovery. We anticipate that in 1994, the housing markets in the Northeast and the West will start to gradually improve," Glunt said.
 Permits issued for all new homes, an indicator of future activity, rose 2.8 percent in October. Single-family permits increased 5 percent while multifamily permits fell 7.6 percent.
 -0- 11/17/93
 /CONTACT: Jay Shackford of the National Association of Home Builders, 202-822-0406/


CO: National Association of Home Builders; U.S. Commerce Department ST: District of Columbia IN: CST SU: ECO

KD-DC -- DC015 -- 5403 11/17/93 10:57 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 17, 1993
Words:440
Previous Article:ANACOMP AND PENNANT AGREE TO DEVELOPAFP-CAPABLE COMPUTER OUTPUT MICROFILM (COM) SYSTEM
Next Article:D.R. HORTON, INC. SIGNS LETTER OF INTENT TO BUY MINNESOTA BUILDER
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters