The number of new buildings in the U.S. in December fell to a minimum

20.01.2011 09:23
The number of homes on which construction was begun in the U.S. in December 2010 decreased by 4,3% compared to the previous month and amounted to 529 thousand homes at an annual rate - a minimum since October 2009, the report said the Ministry of Commerce of the country.

In November, according to some data, the number of newly equal to 553 thousand, not 555 thousand, as previously reported.

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Analysts polled by Bloomberg, predicted decline in the last month on 0,9% from the previously announced November's level - up to 550 thousand homes.

The number of permits for housing construction in December increased by 16,7% - to 635 thousand compared with the revised 544 thousand in the previous month. At the same time, economists expect an increase in rate at 1.8% - up to 554 thousand to 530 thousand previously announced in November. Number of permits shows the pace of housing construction in the near future.

The housing market continues to be near a bottom, which he dropped during the last recession, experts say. Record low mortgage rates can not increase demand for homes, underscoring the limitations of monetary policy by the Federal Reserve System in the elimination of consequences of explosion bubble in the housing market.

"Although the economy seems to be gaining some momentum, the housing market seems stuck at the bottom - said a senior economist at Moody's Analytics Inc. Aaron Smith. - Construction of houses will recover slowly, the situation in the housing market must improve before the forecast for the housing market becomes clearer. "

The number of new buildings, designed for one family, in December fell to 9% - to 417 thousand houses, with a minimum in May 2009 when the volume of apartment buildings increased by 18% to 112 thousand homes on an annualized basis - this is the first increase within four months.

The share of residential buildings account for more than half of total construction in the U.S.. The deteriorating situation in this sector leads, in particular, to reduce the cost of building materials and furnishings.

Content tags: Overseas property
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