New home construction in April hit its highest level since November 2007 as privately owned housing starts hit 1.1 million, a 20.2 percent increase over March. Building permits also increased, rising to a seasonally-adjusted annual rate of 1.1 million as well, 10.1 percent over March, the highest rate since June 2008, according to latimes.

This is good news coming on the heels of the National Association of Home Builders (NAHB) survey of homebuilders report of a slip in confidence, as MHProNews reported May 18, 2015, as well as a drop in new home sales in March.

Economists had predicted starts and permits would bounce back from the severe winter, but now forecast broader economic growth this spring.

Patrick Newport and Stephanie Karol, U.S. economists for IHS Global Insight, said conditions are improving for home construction. “Builders are benefiting from lower wage pressures and cheaper materials,” they said in a research note. “The price of lumber has been dropping like a stone since February.”

The Northeast experienced the largest gain in housing starts, 85.9 percent, driven by multifamily construction. Housing starts rose 39 percent in the West, 27.8 percent in the Midwest, but fell 1.8 percent in the South. ##

(Photo credit: housingwire)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.