House party continues
Housing starts surge 4.7% to 2.16 million annual rate; permits also show surprise gain.
February 16, 2005: 8:35 AM EST
NEW YORK (CNN/Money) - Housing starts and building permits improved in January, according to a government report issued Wednesday that put the latest reading on the strength of the real estate market well above Wall Street forecasts.
Housing starts rose to an annual seasonally adjusted pace of 2.16 million homes in January, up from the revised 2.06 million rate in December. Economists surveyed by Briefing.com had forecast housing starts would slow to a 1.93 million pace in the most recent period.
Building permits, which are seen as a barometer of builder's confidence in the market, rose to an annual rate of 2.11 million in January, compared with a revised 2.07 million pace in December. Economists' consensus forecast had been for permits to slip to a 2 million pace in January.