Building permits climbed in October to the highest level in more than five years, signaling the U.S. residential real-estate market will strengthen in 2014.
Applications (NHSPATOT) for new construction rose 6.2 percent to a 1.03 million annualized rate, beating all forecasts in a Bloomberg survey of economists and the highest since June 2008, according to Commerce Department figures issued today in Washington. Other data showed property values last quarter increased by the most in more than seven years.
The data indicated multifamily units are poised to lead the advance in homebuilding in coming months as construction companies look past higher borrowing costs and proceed with larger projects. Another report showed consumer sentiment remains fragile heading into the holiday-shopping season, a sign of growing concern the economy will be set back by political gridlock in Washington.