June Housing Starts Jump Solid 8 Percent

Nationwide housing starts and permits posted substantial gains in June as home builders responded to improved market conditions and the impending expiration of the first-time buyer tax credit, according to data released by the U.S. Commerce Department. The department reported a 3.6 percent gain in overall housing starts to a seasonally adjusted annual rate of 582,000 units and an 8.7 percent gain in permit issuance to 563,000 units.

“The upcoming expiration of the first-time home buyer tax credit on December 1 is encouraging some builders to get homes started now so that they can be completed in time for clients to take advantage of this attractive buying incentive,” said Joe Robson, a home builder from Tulsa, Okla., and chairman of the National Association of Home Builders, Washington, D.C. “However, there is still much concern about the difficulty of financing new-home production and continuing weakness in the job market.”