BUILDING PERMITS DROP 5.7% IN MARCH, BUT IT’S ALL GOOD-
The number of newly issued building permits in March shrank by 5.7% from February, raising the question of whether new construction will fill the housing inventory void this year—but experts said there’s no reason to panic.
According to the U.S. Commerce Department, homebuilders were granted a seasonally adjusted 1,039,000 permits in March, down from 1,102,000 in February. Permits are a leading indicator of the health of the new-construction industry. Homebuilders are not building speculative housing—they are waiting for a signed contract and hefty earnest money deposit before applying for a building permit to then start construction.
Monthly declines aside, permits are up 2.9% from March 2014 to March 2015, according to the report.
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