It has been reported that the number of new houses being built in the US dropped sharply during the month of May, with an almost 5% reduction when compared to figures from April.
Speaking about the news, John Ryding and Conrad DeQuadros from RDQ Economics said: “We see a clear pattern of gains in single-family housing starts and permits, and the level of permits relative to starts suggests some further gains in the months ahead. Our take is that the housing sector is stabilising and that residential construction activity is beginning to pick up at a modest rate."
While the number of permits applied for permanent construction rose by almost 8% during the month of May compared to the previous month, a figure which was above what analysts had expected, there is no guarantee that the projects for which permits had been granted would actually begin construction. The number of permits granted during May of this year was the highest for four years.
At what is described as the peak time for US construction, the decline in the number of new starts is worrisome for the industry and the market; however, experts are still hopeful that the remainder of the summer will bring stronger figures and help move the housing market in an upwards trajectory once again.
Optimism still remains high within the industry, although there is still some serious concern about the ability to sell new homes once they are completed due to the struggling property market across the country, which is still not showing any signs of real improvement.