New housing starts in Feb. 2009 rise unexpectedly

March 17, 2009 in Uncategorized by Foreclosure.com1 comment

Well this is interesting:

Housing starts jumped 22.2 percent in February 2009 to a seasonally adjusted annual rate of 583,000, according to the Associated Press. January’s figure, 477,000, had been an all-time low and economists had predicted that the slump would continue, dropping to around 450,00 when The Commerce Department issued its next monthly report.

It didn’t happen.

This is strange news, considering that there are already so many homes sitting on the market. The report indicates that the increase can be attributed to the construction of apartments nationwide.

Adam York, a Wachovia economist, thinks it’s a good sign:

“While it may be premature to call an absolute bottom in residential construction, we are clearly getting close.”

Of course, the article goes on to mention that housing construction is “down a whopping 47.3 percent from a year ago.” Regardless, it’s a pleasant surprise. More please.