The U.S. Census Bureau and Department of Housing and Urban Development reported that building permits for privately-owned home projects were at an annual rate of 685,000 during the third month of the year, marking a 7.5 percent improvement over February. When compared to March of last year, permits are up 34.1 percent.
Housing starts also saw a slight increase during the month, up 1.6 percent on February's mark of 616,000. In all, 626,000 home projects were started in March.
Breaking the data down further, authorizations for single-family homes were up 5.6 percent when compared to the second month of 2010. However, housing starts for these projects were down 0.9 in March.
One reason why a higher number of permits and starts were seen overall in March is the upcoming expiration of a tax credit for first-time homebuyers. The government is offering new homeowners an $8,000 incentive for purchasing, though they must do so by the end of April.
As a result, many consumers may be rushing to purchase a home before the deadline, which might have lead to an increase in permits and starts.
