Hello neighbors,

According to a recent government report released this week; new home construction/housing starts rose by 5.8% coming in at 40.9% during the month of April. This jump produced a seasonally-adjusted annual rate of 672,000 last month.

Economists were originally predicting a number of 655,000 starts for the month of April.

As for the specifics, there was a 10.2% rise in single family homes throughout the month of April producing an annual rate of 593,000. Multi-family homes or buildings that consist of more than 5 units came in at 68,000.

The federal tax credit which was thought to have lead to an increase in demand is also credited with having some type of impact on the spike in new home construction.

The number for building permits experienced a decrease of 11.5% with a seasonally adjusted annual rate of 606,000. However, this number is still 15.9% higher than April 2009.