Associated Press writer Martin Crutsinger reported today that, “Construction of new homes fell 4.7 percent in September, the biggest decline in six months, reflecting weakness in both single-family activity and apartment building.
“The September result left construction at a seasonally adjusted annual rate of 1.13 million units, the Commerce Department reported Wednesday. It was the sharpest decline since a 7.7 percent fall in March.
“Homebuilding has been sliding this year, but economists remain optimistic that the low level of unemployment will soon spark a rebound in sales and construction. Even though construction activity has fallen in recent months, homebuilding is 6.1 percent higher than a year ago.”
The AP article added that, “A survey released Tuesday showed that homebuilders are feeling more optimistic than they have in months about the future. The National Association of Home Builders/Wells Fargo builder sentiment index rose 4 points to 68 in October, the highest reading since May. Readings above 50 indicate more builders see conditions as good rather than poor.
“‘With a tight inventory of existing homes and promising growth in household formation, we can expect the new home market continue to strengthen at a modest rate in the months ahead,’ Robert Dietz, chief economist at the homebuilders association, said in a statement.”
