The Commerce Department reported Tuesday that construction of new homes and apartments jumped 22.2 percent in February compared to January, pushing total activity to a seasonally adjusted annual rate of 583,000 units. The consensus forecast was for 450,000.
A glimmer of light at the end of the tunnel? Maybe so, but not as bright as you might think. Apparently what skewed the index higher is an 82.3 percent surge in multifamily sector, which is known for its volatility.
Analysts see it as a temporary rebound and not as a recovery since housing prices are still declining.
Author: Brian McKay
March 17th, 2009
