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KUALA LUMPUR: Nearly all of the 5% decline in housing production was on the multifamily side in June, which fell 21.5% to a seasonally adjusted annual rate of 95,000 units, according to newly released figures by the US Commerce Department.
The report added that single-family housing were almost unchanged from the previous month, with a seasonally adjusted rate of 454,000 units in June.
All four regions posted declines in overall housing production, with an 11.3% reduction in the Northeast, a 6.9% decline in the Midwest, a 2.4% decline in the South, and a 5.9 % decline in the West.
Chairman of the National Association of Home Builders (NAHB) and home-builder from Bloomfield Hills in Michigan Bob Jones said: “However, today’s report is actually somewhat encouraging, because it indicates that single-family production is stabilizing following an expected lull that occurred with the end of the home buyer tax credit program.
“As our most recent member surveys have indicated, builders remain very cautious in light of the sluggish pace of the economic recovery and the hesitancy they are seeing among potential home buyers.”
NAHB Vice President and Senior Economist Bernard Markstein said the government’s figures suggest that single-family housing production may be finding a bottom following the tax credits.
“Over the next several months, we expect to see some improvement in both housing starts and sales activity as buyers come forward to take advantage of the very attractive home prices, historically low mortgage rates and excellent selection that characterize today’s new-home marketplace.
However, builders continue to confront significant challenges in obtaining financing for viable new projects, and this problem remains a formidable obstacle to economic growth,” Markstein said.
The report added that single-family housing were almost unchanged from the previous month, with a seasonally adjusted rate of 454,000 units in June.
All four regions posted declines in overall housing production, with an 11.3% reduction in the Northeast, a 6.9% decline in the Midwest, a 2.4% decline in the South, and a 5.9 % decline in the West.
Chairman of the National Association of Home Builders (NAHB) and home-builder from Bloomfield Hills in Michigan Bob Jones said: “However, today’s report is actually somewhat encouraging, because it indicates that single-family production is stabilizing following an expected lull that occurred with the end of the home buyer tax credit program.
“As our most recent member surveys have indicated, builders remain very cautious in light of the sluggish pace of the economic recovery and the hesitancy they are seeing among potential home buyers.”
NAHB Vice President and Senior Economist Bernard Markstein said the government’s figures suggest that single-family housing production may be finding a bottom following the tax credits.
“Over the next several months, we expect to see some improvement in both housing starts and sales activity as buyers come forward to take advantage of the very attractive home prices, historically low mortgage rates and excellent selection that characterize today’s new-home marketplace.
However, builders continue to confront significant challenges in obtaining financing for viable new projects, and this problem remains a formidable obstacle to economic growth,” Markstein said.
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