The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

U.S. Homebuilders Carry Strong Momentum Into New Year-BMO Economics

- U.S. housing starts outpace expectations by wide margin in December - December U.S. housing starts up 12.1 per cent, Midwest up 24.7 per cent

Thursday, January 17, 2013

U.S. Homebuilders Carry Strong Momentum Into New Year-BMO Economics12:37 EST Thursday, January 17, 2013CHICAGO, ILLINOIS and TORONTO, ONTARIO--(Marketwire - Jan. 17, 2013) - Homebuilders in the U.S. ended 2012 on a high note and are carrying strong momentum into 2013, according to a report from BMO Economics. "Household formations continue to be on the rise, and with inventories near record lows, there will be higher levels of homebuilding activity across much of America in 2013," said Robert Kavcic, Senior Economist, BMO Capital Markets."U.S. housing starts surged 12.1 per cent to a better-than-expected 954,000 annualized units in December, the highest level since June-2008," noted Mr. Kavcic. "December was a warmer-than-normal month and likely added to the increased activity." The U.S. housing market saw the strongest momentum in the latter stages of the year, with overall housing starts of 781,000 units in 2012 - a 27.5 per cent jump from 2011. These gains were spread across the country in December.REGIONAL BREAKDOWN STARTSPctAnnualized UnitsNortheast+24.495,000Midwest+24.7197,000South+3.8469,000West+18.7203,000Building permits were solid, with 903,000 annualized units in December, up from 900,000 the prior month. "While these numbers suggest some pullback in starts from December, the level of activity remains quite firm," stated Mr. Kavcic. About BMO Financial Group Established in 1817 as Bank of Montreal, BMO Financial Group is a highly diversified North American financial services organization. With total assets of $525 billion as at October 31, 2012, and more than 46,000 employees, BMO Financial Group provides a broad range of retail banking, wealth management and investment banking products and solutions. FOR FURTHER INFORMATION PLEASE CONTACT: Contact Information: Media Contacts:Beth Copeland, Chicago(317) 269-1395beth.copeland@bmo.comPeter Scott, Toronto(416) 867-3996PeterE.Scott@bmo.comRussell Baker, Toronto(416) 867-3996russell.baker@bmo.comValerie Doucet, Montreal(514) 877-8224valerie.doucet@bmo.comLaurie Grant, Vancouver(604) 665-7596laurie.grant@bmo.comInternet: www.bmo.comTwitter: @BMOmedia