WASHINGTON - Groundbreaking for new U.S. home construction jumped 8.9% at a seasonally adjusted annual rate in November and housing permits increased 6.0% as the inventories for both components fell to record lows, the Commerce Department reported today.
Housing starts increased to 574,000, the highest level since June, from a downwardly-revised 527,000 in October. 529,000 starts were initially reported. Total starts increased in all four regions. Starts were down 12.4% from November 2008.
Building permits increased to 584,000, the highest level since May, from a downwardly revised 551,000 in October. 552,000 permits were initially reported. Building permits increased in every region except the Midwest where permits declined 1.9%. Permits were down 7.3% from November a year ago.
Economists polled by Thomson Reuters expected 580,000 housing starts and 570,000 building permits, according to the median estimate.
The inventories for total housing starts and building permits dropped to 540,000 and 87,600 respectively. Records for housing starts date back to 1970 and to 1968 for building permits.
