U.S. homebuilders began work at a slower pace in January, though the level was still the third-highest since 2008. The pace of building was viewed as a sign of further strengthening in residential real estate.
U.S. builders broke ground on fewer houses in November after starting work in October at the fastest pace in four years. Superstorm Sandy likely slowed starts in the Northeast.
Home prices rose in August in nearly all U.S. cities, and many of the markets hit hardest during the crisis are starting to show sustained gains. The increases are the latest evidence of a steady housing recovery.
Toll Brothers' net income rose 46 percent in the third quarter as it delivered more homes at higher prices. It also had lower write-downs during the period.
For homebuilders, it hardly feels like an economic recovery. Nearly two years after the recession ended, the pace of construction is less than half the level considered healthy. That weakness is weighing on the economy: Though new homes represent a small portion of overall sales, they have an outsized effect on jobs.
The humbled housing sector took a modest step forward last month as starts rose a better-than-predicted 3.9% to a 530,000-unit annual rate. Still, at the current pace, the nation is 18 to 24 months from seeing normal levels of homebuilding.
U.S. housing starts unexpectedly plunged 11.7% in October to a 519,000-unit annual rate, weighed down by a 47.5% decline in apartment and condo construction. But building permits, a leading indicator of future housing construction, did inch 0.5% higher last month.
The U.S. housing sector's road to recovery is getting rougher: Housing starts fell a worse-than-expected 5% in June to a seasonally adjusted annual rate of 549,000. Is it time for another home buyer's tax credit?
