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Thinkpad (AXcess News) Washington - The US Commerce Department reported yesterday that housing starts in January climbed 14.5 percent, the highest increase in 33 years, which might be attributed to unseasonably warmer weather in many parts of the country.
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Microsoft The new home construction figures surprised analysts who track housing due to the trend in existing home sales slowing while the number of unsold homes around the country rose.
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Laptop Computers Housing starts began the year in January at an annual pace of 2.28 million, the fastest level since 1973, after a drop of 6.9 percent in December. But builders have begun offering more incentives, which may have had some affect on those results as well.
laptop computers is driving strong sales for notebook computers, according to the latest quarterly sales figures from the research firm IDC, which reported a 37% computer sales for the second quarter, compared with a year earlier. In the U.S., laptop sales grew 17.7%, while sales of desktop computers and servers fell 4%. The New York Times ( 10), CNET ( 10)
Laptop Computer Permits for new construction increased 6.8 percent in January,reaching 2.22 million after falling 4.1 percent in December. Compared with January 2005, housing starts were up 4 percent, the Commerce Department reported.
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Desktop Computer The government noted that the average temperature in January was 39 degrees, 8.5 degrees higher than the historical average for the month. Those higher than normal temperatures were also attributed to stronger retail spending and lower energy consumption.
Notebooks "Builders apparently took advantage of the good weather and low interest rates in January to pick up the pace of production after a cold and wet December," said David Pressly, president of the National Association of Home Builders (NAHB) and a home builder from Statesville, N.C.
'The January surge in housing starts was mainly weather-related," said NAHB Chief Economist David Seiders. "Market fundamentals suggest that this pace of activity will be hard to sustain, and NAHB's survey of single-family builders points toward some cooling down in coming months, largely because of eroding affordability conditions."
All four regions reported strong increases in housing starts for the month. Construction of new homes and apartments rose 29.2 percent in the Northeast, 23.7 percent in the Midwest. 8.7 percent in the South and 16.9 percent in the West.
Multifamily housing starts increased by 21.9 percent for the month to a seasonally adjusted pace of 457,000 units. This was 9.1 percent above the pace of a year ago. "Our surveys of multifamily builders show that the rental market is firming up to some degree, with declining vacancies and rising rents," said Seiders.
Issuance of total building permits increased 6.8 percent to a seasonably adjusted rate of 2.217 million units for the month. Single-family permit issuance was up 2.4 percent to a pace of 1.685 million units for the month. The pace of multifamily permit issuance increased 23.7 percent to a pace of 532,000 units for the month.
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