WASHINGTON (AP) – Builders broke ground on fewer houses and apartment complexes in August, a possible sign that the housing market may be levelling off after accelerating for much of the year.
Housing starts last month fell 3 percent to a seasonally adjusted annual rate of 1.13 million homes, the Commerce Department said Thursday. Construction activity slowed sharply in the Northeast and Midwest last month, edged downward in the West and climbed in the South.
Still, homebuilding appears much stronger than a year ago, despite figures that can be highly volatile on a monthly basis.
“This is a mere blip on the radar,” said Tom Wind, executive vice president of home lending at EverBank. “The housing market’s underlying fundamentals remain on pace for continued recovery.”
Housing starts have climbed a solid 11.3 percent this year to date. Steady job gains of 2.9 million in the past 12 months are contributing to increased demand from buyers and renters. And as the recovery from the Great Recession has entered its seventh year, residential construction has stated to both reflect and fuel broader economic growth.