US House prices to rise
According the U.S. Department of Housing and Urban Development and the Commerce Department, led by impressive gains in both single-family and multifamily production, nationwide U.S. housing starts surged 25.5 percent in October 2016 to a seasonally adjusted annual rate of 1.32 million units.
Single-family starts reached their highest level since October 2007 while multifamily production jumped 68.8 percent from the previous month.
“These robust figures correlate with strong builder optimism in the housing market,” said Ed Brady, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Bloomington, Ill. “A firming job market, a growing economy and rising household formations will keep the housing recovery on track into next year.”
“Multifamily production bounced back after an unusually weak reading last month while single-family starts exhibited unusually strong growth as well,” said NAHB Chief Economist Robert Dietz. “Though October’s single- and multifamily production rates are clearly unsustainable, we expect continued growth in the housing sector in the months ahead.”
Single-family starts rose 10.7 percent in October to a seasonally adjusted annual rate of 869,000 units while multifamily production climbed 68.8 percent to 454,000 units.