WASHINGTON, July 19 (Reuters) – U.S. single-family homebuilding fell in June, but permits for future construction rose to a 12-month high as a severe shortage of previously owned houses for sale supports new construction.
The decline in housing starts reported by the Commerce Department on Wednesday partially retraced an abnormally large 18.7% surge in May, which had pushed groundbreaking on single-family housing projects to an 11-month high.
Builders’ efforts to ramp up construction are, however, being frustrated by shortages of materials like electrical transformer equipment as well as higher borrowing costs. Housing completions fell last month and the stock of single-family homes under construction was the lowest in two years.
“The level of single-family starts remains robust, and we believe ongoing near-term strength is likely given the continued upward trend in permits,” said Mark Palim, deputy chief economist at Fannie Mae in Washington.
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Source: www.reuters.com
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