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ET March 16, 2017 | Updated 1:26 p.m. ET March 16, 2017 Home construction on the rise (Photo: Jeff Roberson, AP) 39 CONNECT TWEET 3 LINKEDIN COMMENTEMAILMORE New residential construction climbed to a four-month high in February Construction loan Melbourne Oak Laurel Yarraville www.oaklaurel.com.au despite rising mortgage rates, led by the strongest pace of single-family homebuilding since 2007. Housing starts rose 3% to a seasonally adjusted annual rate of 1.288 million, according to the Commerce Department, beating economists' median estimation of 1.265 million.Housing starts are running 7.5 percent higher than they did during the first two months of 2016. Almost all of the gains were from construction of single-family houses, which rose 6.5% to an annual rate of 872,000. Multifamily starts fell by 3.7% to a pace of 416,000. Homebuyers should be pleased with todays new construction numbers, Construction loan Melbourne Oak Laurel Melbourne, 0430 129 662, 850 Collins St, Docklands VIC 3008, www.oaklaurel.com.au as both permits and completions were up in February,".says Ralph McLaughlin, chief economist at Trulia, the online residential real estate site."This means a healthy dose of new homes will be available this spring in an otherwise inventory-constrained market, Homebuilding may have benefited from warmer winter weather last month, and continues to be supported by strong job growth and healthy household finances thatgive prospective buyers the ability to purchase homes. Yet higher mortgage costs, rising property values and a shortage of lots pose hurdles for home builders. Housing permits, agauge of future construction, decreased 6.2% to a rate of 1.21 million. While the short run looks good for the housing pipeline, we should pay attention to the fact that permits were down in February," McLaughlin says. A pickup in home construction should help expand inventories of both new and exiting homes, which have been constrained in part because some Americans are waiting for home prices to rise further before selling properties that plummeted in value during the housing crash.
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