Housing Starts and Building Permits both jumped in June.
Housing Starts surged 8.3 percent from May to an annual rate of 1.215 million units, the Commerce Department reported. This is the highest level since February and comes after three straight monthly declines. Single-family starts, which represent the largest share of the residential housing market, rose 6.3 percent. The multi-family dwelling sector soared as well. Housing Starts also were up 2.1 percent from June 2016.
June Building Permits, a sign of future construction, rose 7.4 percent from May's revised figure to an annual rate of 1.254 million.
New home construction is a welcome sign as tight inventories of homes for sale continue to push home prices higher around much of the country. Data analytics firm CoreLogic reported that home prices nationwide rose 6.6 percent from May 2016 to May 2017 and 1.2 percent from April to May of this year. CoreLogic forecasts indicate that home prices will increase by 5.3 percent on a year-over-year basis from May 2017 to May 2018.