Tuesday, April 19, 2011

NEW HOME CONSTRUCTION UP DESPITE BUILDER PESSIMISM

Builders broke ground last month on the most new homes in six months, giving the weak housing market a slight boost at the start of the spring buying season. 

New home construction rose 7.2 percent in March from February to a seasonally adjusted 549,000 units, the Commerce Department said Tuesday. Building permits, an indicator of future construction, rose 11.2 percent after hitting a five-decade low in February.  Click Here to read the latest builder confidence index.

Still, the building pace is far below the 1.2 million units a year that economists consider healthy. And March's improvement came after new home construction fell in February to its second-lowest level on records dating back more than a half-century. 

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