Following an above-trend rate of production in October, nationwide housing starts slipped 3.0 percent to a seasonally adjusted annual rate of 861,000 units in November, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, permits for new construction rose to their strongest level in more than four years, with a 3.6 percent gain to 899,000 units.
"Many builders have reported improving conditions in their local housing markets and are increasingly optimistic about the spring buying season, but they are being very careful not to get ahead of demand," observed Barry Rutenberg, chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville, Fla. "Meanwhile, tight credit conditions are still the chief obstacle to a quicker recovery."