After recent reports of a double-dip in home prices and dire forecasts for prices in the coming months and beyond, housing starts this week showed an upswing that beat analysts’ estimates, though still fell short year-over-year.
New residential construction rose 3.5% to 560,000 starts during May to its highest level in months, beating analysts’ estimates that fell between 530,000 and 560,000, according to data from the U.S. Census and the Department of Housing and Urban Development.
“While May’s housing data exceeded expectations, we recognize the imperative for a continued and full economic recovery that includes a healthy housing sector as well as continued job growth” said U.S. Commerce Secretary Gary Locke. “This administration is committed to pursuing policies that will do just that, helping America win the future,” he said.
The gain over April’s housing starts may be seen as a positive, but the year-over-year change in starts still reflects a 3.4% decrease from housing starts in April 2010.
Written by Elizabeth Ecker