"We're headed higher and next year is going to be the best year for housing starts that we've seen since 2007"
- Stuart Hoffman, chief economist at PNC Financial Services Group in Pittsburgh
The number of homebuilding permits in the world's biggest economy touched its highest level in four years, suggesting the property market is gaining momentum and the recovery will extend into 2013. According to the Commerce Department, the building permits jumped 3.6% to a seasonally adjusted annual rate of 899,000 units, above analysts' expectations of 875,000 units. However, housing starts dropped 3% to an 861,000 pace, but it was followed by three straight months of solid gains. Moreover, housing starts were 21.6% higher last month than in November 2011, a sign that overall construction remains healthy.
"We're headed higher and next year is going to be the best year for housing starts that we've seen since 2007," said Stuart Hoffman, chief economist at PNC Financial Services Group in Pittsburgh, who projected starts would drop to an 865,000 pace. "Housing is coming back."
"The trend is definitely up. Housing is going to make a small contribution to economic growth in 2012 and I would expect that home building will continue to improve through 2013," said Gus Faucher, senior economist at PNC Financial Services in Pittsburgh.
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