Wells Fargo Reports: Housing Starts Pull Back in March

Housing starts tumbled 8.8 percent in March to a 1.09 million-unit rate, led by a 9.2 percent decline in single- family starts. Building permits also slipped on the month and are now running in line with the pace of starts.
Homebuilding Slows in March
• On the heels of February’s unseasonably large 6.9 percent gain, • housing starts fell 8.8 percent in March to a 1.09 million-unit pace. Weakness was broad based as both single and multifamily starts reported declines. Permits also slipped on the month, falling in line with the pace of starts.
• Despite the dip in building activity, on a year-to-date basis, single-family starts are up 22.2 percent.
Completions on the Rise
• The supply of new homes coming to the market has improved, as the number of homes completed and under construction both reported gains in March. This strengthening trend bodes well for new home sales, which have been held back by tight inventories.
• The housing market seems relatively well positioned heading into the spring home buying season. We expect housing starts to gain momentum in the year ahead, and cap 2016 up 11 percent.