UPDATED 11:36 a.m. EDT: Groundbreaking on new U.S. homes surged in September to its fastest pace in more than four years, a sign the housing sector's budding recovery is gaining traction and supporting the wider economic recovery.
Housing starts increased 15 percent last month to a seasonally adjusted annual rate of 872,000 units, the Commerce Department said on Wednesday.
That was the quickest pace since July 2008, though data on starts is volatile and subject to substantial revisions.
America's economy has shown signs of faster growth in recent months as the jobless rate has fallen and retail sales data has pointed to stronger consumer spending.
Wednesday's data showed that housing, which was battered by the 2007-09 recession, is increasingly one of the brighter spots in the economy.
"One of the big headwinds for the economy has been the weak housing market and this indicates that headwind has dissipated," said Gary Thayer, an economic strategist at Wells Fargo Advisors in St. Louis, Missouri.
Home building could add to growth this year for the first time since 2005 and the brighter economic signal is likely to be welcomed at the White House, where a sluggish economy is weighing on President Barack Obama's chances of re-election next month.
Economists estimate that for every new house built, at least three new jobs are created.
More home building could help compensate for some of the weakness recently in factory output, which is seen as due to sluggish export demand and cooling investment in capital goods.
Link to Article on NBC News.com
About Me
- Kirk Pugh
- I am a 25-year hospitality professional turned real estate broker and investor. Originally from Louisville, Kentucky, I have been blessed to live in some amazing places during the course of my career. Key Largo, Florida and Sea Island, Georgia, Southern California, Upstate New York, and numerous locales throughout the Midwest are just a few of the places I have called home. I have made Wilmington my home since 2002 and turned a passion and love of real estate into my vocation. I have been an active real estate investor for eleven years. I have purchased, rehabbed and sold dozens of homes over the course of my real estate career. Over the past three and a half years, I have dedicated myself to the practice of general brokerage. I am a REALTOR with Keller Williams Realty and offer traditional sales and marketing for buyers and sellers. I also offer consulting services to other investors. I am a past Board Member of the Coastal Carolina Real Estate Investors association. Whether for retirement, professional relocation, lifestyle changes, or investment, I have the local knowledge and aptness to help you achieve your real estate goals.
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