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New Home Construction Surged In May But Is Expected To Dip Over The Summer

June 19, 2017

About 1.2 million new homes were completed in May, 5.6 percent more than in April and 14.6 percent more than in May 2016. Single-family home production was strong too, rising 4.9 percent from April and 12.8 percent from last May.

Realtor.com notes, though, that while completions were up, permits were down, indicating that fewer new homes will be put on the market over the next few months. Builders received 4.9 percent fewer home permits in May compared to April (and 1.9 percent fewer single-family homes).

Meanwhile, housing starts, which are the number of residences on which construction began, were down 5.5% from April and dipped 2.4% from May 2016.

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