Single-family Housing: Starts Skyrocket 11%, While Permits and Completions Slide!

The housing market took a major hit during the Coronavirus pandemic, with home sales and prices dropping significantly in many areas. But the latest data from the U.S. Census Bureau suggests that the market is beginning to recover, with single-family housing starts showing a major surge in the third quarter of 2020.

Housing Starts Up 11.3%

The Census Bureau’s report shows that single-family housing starts rose 11.3% in the third quarter of 2020, compared to the second quarter. This is the biggest jump since the start of the pandemic, and it signals that the housing market is slowly beginning to recover.

The report also shows that single-family housing completions fell 3.2% in the third quarter, compared to the second quarter. This is the first quarter-over-quarter decline since the start of the pandemic, and it suggests that even with the increase in starts, there is still some uncertainty in the market.

Permits Drop 6.2%

Another key indicator of the health of the housing market is the number of building permits issued. This data shows that permits for single-family housing fell 6.2% in the third quarter, compared to the second quarter. This is the first quarterly decline in permits since the start of the pandemic, and it suggests that builders may be becoming more cautious in their investments.

Rising Prices

Despite the drop in permits, the data shows that home prices are continuing to rise. The National Association of Realtors reported that the median home price rose 11.1% in October, compared to the same month last year. This is the biggest year-over-year increase since the start of the pandemic, and it suggests that the market is still in recovery mode.

Continued Uncertainty

The housing market is still in a state of flux, and the future is uncertain. The latest data shows that there is still some cautiousness among builders and buyers, and that the recovery will likely take some time.

However, the fact that single-family housing starts jumped 11.3% in the third quarter is a good sign that the market is beginning to recover. With prices continuing to rise and builders becoming more cautious, the future of the housing market looks brighter than it did a few months ago.

Final Thoughts

The latest data from the U.S. Census Bureau shows that single-family housing starts jumped 11.3% in the third quarter of 2020, while permits and completions declined. This suggests that the housing market is beginning to recover, but there is still some uncertainty as builders become more cautious in their investments.

Home prices continue to rise, which is a good sign that the market is still in recovery mode. But the future of the housing market is still uncertain, and it will likely take some time for the market to fully recover.