US: Another solid month for Homebuilding - Wells Fargo

Today’s data from the housing sector in the US surpassed expectations. According to analysts from Wells Fargo, the rise in housing starts and building permits shows that June was another month for solid growth for homebuilding.

Key Quotes:

“Housing starts rose a solid 4.8 percent in June. Single-family starts rose 4.4 percent and are running 13.2 percent ahead of their year-ago pace through the first six months of 2016. Permits rose 1.5 percent in June.”

“The rise easily beat market expectations, which were weighed down by softer building permit data from prior months. The earlier weakness in housing permits likely reflects delays in the permitting process.”

“Single-family completions have surged 17.9 percent over the past year. The gain should provide a boost to new home sales, which have been held back by a lack of supply.”