US Housing Starts Slow in April

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Housing starts in the United States fell 16.5 percent from March, but builders filed for more building permits, suggesting any slowdown in construction may be short lived.

The number of housing starts slipped to an annual adjusted rate of 853,000, down from 1.021 million in March, according to Department of Housing and Urban Development statistics released today. While a drop from March, the rate was still 13.1 percent above the April 2012 rate of 754,000.

But the industry observers can be buoyed by a sharp uptick in the filings for building permits, which hit levels not seen since 2008. The annual rate jumped to 1.017 million units, a 14.3 percent increase from March and a whopping 35.8 percent increase from April a year ago.

The housing starts data fell below industry estimates, which predicted an annual rate of 965,000 from a prior March estimate of 1.036 million, the Wall Street Journal reports.

The total housing start data was impacted by a sharp drop in multi-family construction, which fell 38 percent from March.

Overall, the industry outlook remains positive, with home prices rising in most areas.

The National Association of Home Builders' monthly report released yesterday found an increase in builder confidence.

"Builders are noting an increased sense of urgency among potential buyers as a result of thinning inventories of homes for sale, continuing affordable mortgage rates and strengthening local economies," noted NAHB chairman Rick Judson. "This is definitely an encouraging sign even amidst rising challenges with regard to the cost and availability of building materials, lots and labor."