The US housing market has performed better than expectations with 1.319 million starts in March compared to the expected 1.262 million starts in the month, revealing exceptional turnarounds in the US homebuilding market.
The reason such increase was due to the rebound observed in the construction of multi-family housing units. However, on the contrary, these revealed a weakness in the single-family segment further proving the slow pace returns in the housing market.
The housing starts reported a rise of 1.9 percent, as it adjusted to 1.319 million units, as revealed by the Commerce Department. On the other hand, the data garnered from February reveals a total opposite to data received from March. In February, the market starts to decline from 1.295 million units to 1.236 million units in comparison.
The forecast housing began to rise at a pace of 1.262 million units in the last month. Contrarily, the permits for the future home building increased by 2.5 percent, settling at 1.345 million units in March. Moreover, the US financial markets data remained more or less little moved by the housing market data.
There has, therefore, been a rebound in the homebuilding market in the last month but the overall activity seems to be slowing down. The single-family home building holds the housing market’s most significant share but that number fell by 3.7 percent, as it settled at 867,000 units in March.
The mixed data reveals that the confidence amongst the homebuilders dropped in April for the 4th straight month in a row. People have also been complaining about the lack of buildable houses and rising construction material costs.
The single-family construction units also increased by 0.2 percent, as it reached their highest levels since June 2008. Realtors estimate that the housing starts have to be in the range of 1.5 million – 1.6 million units a month to bridge the inventory gap.