Aporil 10, 2017 – Tight inventory of existing homes and solid job creation are sustaining growth for home building. New single-family starts increased in February to the fastest annual pace since fall 2007. Permits were also up in February, registering the highest rate in almost 10 years. While unseasonably warm weather accelerated construction activity in some regions, underlying demand conditions remain strong.
Thus far in 2017, rising interest rates have had little impact on the new homes market. In February, new home sales were up 6.1% from the prior month, and 12.8% above the pace set a year earlier. Inventory is also on the rise, increasing to approximately 266,000 as of February. As is typical during periods of tight inventory, the largest increase in new home inventory has been in the not-yet-started category of homes listed for sale.
–NAHB Chief Economist Robert Dietz
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