If you’re looking for a bright side to the real estate market some uplifting numbers aren’t exactly hiding with home builders. There is definitely some confidence going on in the one-family home market as home builders have requested more permits than they have in over 3 years.
Directly from the U.S. Department of Housing and Urban Development report released on Tuesday June 19th, 2012:
Building Permit Growth
Single-family authorizations in May were at a rate of 494,000; this is 4.0 percent (±0.8%) above the revised April figure of 475,000. Authorizations of units in buildings with five units or more were at a rate of 266,000 in May.
Housing Starts Growth
Single-family housing starts in May were at a rate of 516,000; this is 3.2 percent (±12.5%)* above the revised April figure of 500,000. The May rate for units in buildings with five units or more was 179,000.
It was reported by the LA Times that multi-family housing has had trouble growing at the same pace. Last month the rate of multi-family housing saw a major decline of 21.3% and had an effect on overall numbers and optimism. The 3.2% percent increased as quoted above on single-family homes however is now in the third straight increase and looks to be stable in it’s growth.
There are some signs of recovery in the overall numbers and home builder stocks saw some increases today. The end of market numbers had some gains taken away but still are showing signs of support.
DR Horton rose $.22 or 1.3 percent, to $16.72.
Hovnanian Enterprises Inc. fell $.03 or 1.1 percent, to $2.60.
Lennar Corp. rose $.06 or .2 percent, to $27.03.
Pulte Homes Inc. rose $.28 or 3.0 percent, to $9.61.
New Housing Numbers a Mixed Bag
Permit gains offset housing start losses in May’s report, which suggests the housing recovery could be on track.