December housing starts fall 9.8% to 999,000 rate

December housing starts fall 9.8% to 999,000 rate

Construction on new U.S. homes fell 9.8% in December to a seasonally adjusted annual rate of 999,000, pulling back after a surge in November, with drops for single-family homes and apartments, the government reported Friday. Economists polled by MarketWatch had expected cold weather to take a toll on new construction, and forecast that overall housing starts in December declined to a rate of 985,000 from a prior starts-rate estimate of 1.09 million for November. On Friday, the U.S. Commerce Department revised November's start rate to 1.11 million. Despite December's decline, home-construction starts for all of 2013 hit 923,400, the highest annual total since 2007, pointing to the housing market's continued recovery. Also Friday, the government reported that building permits, a sign of future demand, fell 3% in December to an annual rate of 986,000. For all of 2013, permits hit 974,700, also reaching the highest annual level since 2007.