U.S. housing starts surged 20.2% to 1,135,000 units annualized. This is the biggest monthly % move since Feb 1991, it doubled expectations and is the highest level since Nov 2007.
The gains were spread between singles (+16.7%, 2nd increase in a row) and multis (+27.2%, 2nd increase in a row too). Of the four regions across the country, only the South saw a decline but it was obviously eclipsed by gains elsewhere. After a couple of months of being held back by the weather, the Northeast saw the largest % gain (they nearly doubled) while the Midwest and the West saw gains between 27%-to-36%.
Generally with such large outsized jumps in any given month, expect a sizeable retracement in the following month but the fact that building permits also surged an impressive 10.1% to 1,143,000 units annualized suggests more homebuilding activity ahead - notes BMO Capital Markets
