WASHINGTON–In a sign that the real-estate market may be rebounding, both housing starts and residential building permits posted substantial gains last month, according to monthly figures from the U.S. Department of Commerce.
Starts came in at a seasonally adjusted annual rate of 582,000, up 3.6 percent over May, while permits registered a 563,000 seasonally adjusted annual rate, 8.7 percent ahead of May. Both numbers were still well below their June levels of one year ago, but this year’s June numbers marked the second month in a row of increases for both indicators.
According to Joe Robson, chairman of the National Association of Home Builders and a home builder based in Tulsa, Okla., builders have accelerated starts with the expiration of the first-time home-buyer tax credit on Dec. 1. “However, there is still much concern about the difficulty of financing of new-home production and continuing weakness in the job market,” Robson said.
David Crowe, NAHB chief economist, said the June report “was in keeping with our forecasts for some glimmers of improvement” in the housing market. Repeating a theme voiced over the past few months by the association, Crowe cautioned that the “severe tightening of credit” for construction financing and instances of low appraisals that are “improperly” linked to distressed properties could derail the recovery in the housing market.