Housing starts fall in January

Housing starts fell 8.5 percent from December 2012 to January, according to USA Today. Construction decreased to a seasonally adjusted annual rate of 890,000 compared with 973,000 in December 2012.

Additionally, single-family construction starts rose 0.8 percent. And building permit applications, which are viewed as a barometer of future construction, rose 1.8 percent in January to 925,000, which is the most since July 2008.

Rising home prices could be the latest sign that the housing recovery is strengthening. The supply of previously occupied homes for sale is at the lowest level in more than 10 years. Additionally, the pace of foreclosures, though still rising in some states, has slowed sharply nationwide.

Housing starts are far above the annual rate of 478,000 in April 2009, which was the recession low. Housing starts also were 23.6 percent higher in January than in January 2012. However, a 1.5 million annual rate still is needed to be considered healthy.

Date : 2/27/2013