Growth in US housing market

The housing recovery may be back on in the US, as data out yesterday showed a strong rise in housing starts last month. New permits granted reached their highest level since 2008, growing by 7.9 per cent to 780,000 in May. This was well above forecasts, suggesting that there will be a greater future demand for new houses.

Home building dropped in May by 4.8 per cent month-on-month associated with a 21.3 per cent drop month-on-month in multi-family construction.