On Friday, US Commerce Department had reported a sharp rebound in US homebuilding following a temporary weather-related backlash in February as US housing starts had geared up to a nearly 15-year peak in March, though a torrential rise in lumber prices alongside a soaring supply-crunch could curb out developers’ amelioration to step up production and a steep shortage in available homes for sales could threaten a ballooning US housing market momentum, suggested analysts.
Nonetheless, latest US housing market report from Commerce Department came forth a day after economic data had revealed that US retail sales had jumped to a 10-month high in March, illustrating a roaring US economy largely driven by an acceleration in vaccination campaign, massive fiscal stimulus alongside a warmer weather, which is expected to grow by the steepest pace since 1984 this year.
US housing starts spike to 15-year high; consumer confidence improves
According to US Housing market data revealed earlier in the day, US housing starts surged by 19.4 per cent to a seasonally adjusted 1.739 million units on an annualized basis last month, the strongest level since June 2006, though an analysts’ poll was expecting a rise in the rate to 1.613 million units in March.
Adding further bullish wing to an affluent US housing market, US housing starts climbed 37 per cent in March compared to the same time a year earlier with a breakneck pace in Housing Starts’ rates being observed in the Northeast, Southern and Midwest part of the United States.
Meanwhile, addressing to a robust US housing market which has been anchoring the economy’s growth during last year’s outbreak, a chief economist at Fannie Mae in Washington, Doug Duncan said, “While housing demand is expected to remain strong, we expect it to diminish somewhat as the year progresses.
Homebuilders continue to face supply constraints, including increasing prices of lumber and other materials”. A separate report from the University of Michigan had unveiled that its index for US consumer confidence rose to 86.5 this month following a final reading of 84.9 in March.