Housing posts surprising rebound in April
AP , Washington: May 16 2008
Made Popular May 16 2008

Construction of new homes posted the biggest increase in more than two years in April, a rare bit of good news in what has been the worst downturn in housing in more than two decades.

The Commerce Department reported Friday that housing construction rose by 8.2 percent in April to a seasonally adjusted annual rate of 1.03 million units. A big jump in apartment construction offset further weakness in single-family homes. The gain represents a recovery after a steep slump in March building that had pushed activity to the slowest pace in 17 years.

However, the surprising rebound in April was expected to be temporary, given the headwinds builders are confronting at the present _ from slumping sales to soaring home foreclosures.

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