WASHINGTON — Single- family home construction posted a modest rebound in April, raising hopes that the three-year slide in housing is leveling off. But a bulging supply of unsold homes, record levels of foreclosures and still-falling home prices suggest a sustained recovery isn’t likely until next spring at the earliest.
The Commerce Department said construction of multifamily homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units. That’s the lowest pace in a half-century.
Applications for new building permits dropped 3.3 percent to an annual rate of 494,000, also a record low.
“I think we have probably reached the low point for this housing crash, but I don’t expect us to come roaring back,” said Mark Zandi, chief economist at Moody’s . “I think it will take another year for a recovery in housing to get going.”
In April, housing construction fell 30.6 percent in the Northeast, the largest drop for any region. Housing starts dropped 21.4 percent in the Midwest and 21.1 percent in the South. The West was the only region showing strength, with a 42.5 percent jump in housing starts.
All of last month’s weakness came in the volatile multifamily part of construction. By contrast, single-family construction and permits both rose, which economists took as a hopeful sign that this bigger sector of home construction was stabilizing.
Many economists say home construction likely will stop falling in the current quarter. But any rebound isn’t expected to take hold until next springand even then is likely to be slow.
