Housing starts surged in the month of November, according to a report released by the Commerce Department, signaling that the construction market is stabilizing headed into 2012.
The number of starts are a measure of the projects that broke ground, and the figure rose sharply throughout November, up 9.3 percent. In fact, the seasonally-adjusted annual rate is now at its highest point in 19 months, according to Bloomberg. New building permits were also at a one-year high. The numbers also exceeded the highest forecast by analysts polled by Bloomberg. Both multifamily units, such as apartments and townhouses, and single-family residences were up in November.
"It's a solid report," aid Brian Jones, a senior U.S. economist at Societe Generale in New York, who had the highest forecast in the Bloomberg survey. "For months we’ve been flagging the strength in multifamily construction, but now we’re starting to get signs that single-family is pulling itself off the canvas."
New housing starts likely means more projects for construction companies, something that owners need to be prepared for. The auction site IronPlanet offers a way for construction companies to buy used construction equipment online quickly and easily. The site's IronClad Assurance allows buyers to view a detailed inspection report before they bid, ensuring that they know exactly what they're getting.
