US housing starts fall during July

August 23rd, 2012

Housing starts declined in July.

The American residential housing market has made progress in recent months. However, the sector still struggles to sustain its recovery, which could make some potential transferees hesitant or unable to partake in a move.

The U.S. Department of Housing and Urban Development noted that housing starts dipped during July. In all, starts posted an annual rate of 746,000 during the month, which represented a drop of 1.1 percent compared to June's rate of 760,000. However, July's figure was also nearly 30 percent higher than the same point in 2011.

"The likelihood is that housing starts will rise strongly next month," Paul Diggle, property economist at Capital Economics, told the news source. "All in all, despite the slight fall, this latest set of results does little to dissuade us that the underlying trend in housing starts is upwards."

The report also noted that single-family housing starts declined 6.5 percent to a rate of 502,000 during July. June's rate was 537,000. Building permits increased by nearly 7 percent during July to a rate of 812,000, a jump of more than 50,000 from June.

A mortgage consultant may be able to ease the concerns of transferees regarding the housing market's issues, as affordability is currently high.