Housing starts increased significantly in June from the previous month, as builders gained access to more lines of credit, allowing them to break ground on real estate projects.
The construction rate, including both single- and multi-family homes, surged nearly 7 percent in June, according to a report from the Department of Housing and Urban Development. This was the most significant month-over-month increase in more than three years, Bloomberg News reports.
"Evidence from the field suggests that the 'for sale' housing market has, in fact, bottomed and that we have commenced a slow and steady recovery process,” Lennar Corp. CEO Stuart Miller told Bloomberg.
Specifically, single-family housing starts rose 4.7 percent to an annualized rate of 539,000 units, up from just 515,000 in May, the report said. Meanwhile, builder permits, which are an indicator of future construction activity, dipped 3.7 percent in June from the previous month, with a total of 755,000 applications. However, this was approximately 19 percent higher than June 2011 levels.
Regional property data indicates housing starts rose the most in the West after a 36.9 percent jump, and the Northeast, which experienced a 22.2 percent increase.