Housing market showing more signs of recovery

There's more good news on the housing front as permits for homebuilding increased considerably and new construction grew more than expected in March, more signs that the housing market is recovering. 

The trio of positive results included a 7.5 percent jump in permits for new residential construction, a 1.6 percent increase in new housing starts in March on top of February numbers that were revised considerably, according to a Commerce Department report released Friday. 

Housing starts increased 626,000 last month up from February's 616,000 while new building permits showed their biggest gains since October 2008. 

Permits have advanced 37.6 percent and starts have risen 30.7 percent above their low points in April 2009, according to the Commerce report. New construction was up 20 percent over March of last year. 

The South showed an increase in housing starts, while construction fell in the rest of the country. A Treasury Department report this week reflected positive new construction numbers reported out of Atlanta. 

"The good news is that housing permits and starts came in above expectations and are up substantially from their lows last year," Commerce Secretary Gary Locke said. "But housing data can be volatile. The outlook is positive but President Obama understands there is much work left to ensure continued economic growth and to put Americans back to work."

Builder confidence rose more than expected from 15 to 19 in March, according to the National Association of Home Builders/Well Fargo index. Despite the best results in two years, any number before 50 still means most respondents consider conditions poor.