U.S. Housing Start Soars Up in Dec 2014

U.S. Housing Start Soars Up in Dec 2014

Newly constructed homes in the U.S. soared higher in December 2014 with the rush in single-family housing sector, according to the government data released on January 21, 2015.

This has led to the rise of the U.S. housing sector start up’s at solid 8.8% throughout 2014 compared to 2013 at the rate of nearly 1.006 million reaching the highest point, since the year 2007.

New One Family Houses Sold: United States   

New Homes sold were 481,000 in Dec 2014, 431,000 in Nov 2014 and 442,000 in Dec 2013.There was an increase over last month and an increase over last year.

Notes:

Monthly, Seasonally Adjusted Annual Rate

New Privately-Owned Housing Units Under Construction: Total

According to the statistical report, the units of newly constructed privately-owned homes increased to 835,000 in December, 2014 compared to 711,000 in December, 2013 and 816,000 in November 2014. This is the annually adjusted rate based on seasonal monthly basis.

Notes:

Monthly, Seasonally Adjusted

Housing Starts: Total: New Privately Owned Housing Units Started

Looking into the statistical analysis of units of new privately-owned housing starts increased to 1,089,000 in December, 2014 from its prior estimation rate of 1,043,000 in November, 2014. Annual rate is estimated taking into consideration the seasonal and monthly rates.

Notes:

Monthly, Seasonally Adjusted Annual Rate

New Private Housing Units Authorized by Building Permits

The annual rate inclusive of monthly and seasonal rates showed a tremendous increase of 1,058,000 in December, 2014 as compared to 1,022,000 in December, 2013 and 1,052,000 in November 2014.

Notes:

    • Monthly, Seasonally Adjusted Annual Rate
    • Starting with the 2005-02-16 release, the series reflects an increase in the universe of permit-issuing places from 19,000 to 20,000 places.

 

New Single-Family Homes

Rise of the U.S. housing market in December paved the path for single-family homes reaching its highest level in over 6½ raising hopes for the revival of slow-moving housing sector.

“Looking out to 2015, we think that a stronger labor market may support a pickup in household formation, which in turn may underpin further gains in housing construction,” John Ryding, chief economist at RDQ Economics in New York, said in a research note. “We also think that with housing still relatively affordable and with households increasingly employed and feeling that economic conditions are more normal, that single-family housing will carry more of the gains in housing construction in 2015.”

Sentiment in the industry is hovering close to a nine-year high. While the National Association of Home Builders/Wells Fargo builder sentiment gauge fell to 57 in January from 58 the prior month, readings greater than 50 mean more respondents report market conditions are good, according to figures from the Washington-based group on Tuesday.

Single-family homes account for major part of the home buildings in the U.S. rose up by 7.2% in December, 2014 to 728,000 units pace. Starts for the single-family homes had shown an increase of 4.9% compared to 2013.

 

Increased Number of Employment Opportunities

Developing condition of labor market in the U.S. is also expected to assist in lifting up the home sales as well as support the construction activity further. Approximately 3 million more numbers of U.S. citizens found them engaged to some kind of works the last year showing a great change in the past 15 years as revealed in the figures of Labor Department.

This also had seen the payrolls up in December, 2014 by 252,000 labors subsequent to the gains of 353,000 the last month when the jobless percentage fell down to 5.6 reaching the lowest point from 2008.

Increased confidence also would help in the scenario further.  Index of preliminary consumer sentiment rose the highest in January, 2015 compared to the report from January, 2004 as reported by the “University of Michigan”.

The average 30 years fixed rate mortgage was 3.66% for the week ending on January, 2015 and is the lowest from May, 2013 as per the data obtained from “Freddie Mac” at McLean in Virginia.

[FBW]

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