Building permits for privately-owned housing units dropped 9% below the Feburary rate and 45% compared to March of last year. For single family homes, the rate dropped 7.4% compared to February.
Housing starts declined 10.8% from February and 48.4% compared to March of last year. However, for single-family homes, the rate was unchanged from February.
But there is a silver lining– more houses were completed in March than in February. Privately owned homes were completed at a rate that is 3.5% higher than the month before, while single family homes were completed at a rate that is 5.0% higher than in February. The completion of homes is a good sign. It indicates that projects are still being completed and the growth of new homes.
The foreclosure market nonetheless surged during the first quarter. Foreclosures increased 9% over the previous quarter and 17% in March compared to February. Many of the new home sales are of foreclosed properties, especially in weakened markets, up to 70 or 80%.
Continued home sales, even if they are of foreclosures, mean the market has not stalled. Yet, increased foreclosure rates are not a good sign–hopefully the housing market will rebound soon.