Builders broke ground on more new homes than anticipated in April, indicating the residential real
estate industry is stabilizing.

Starts rose 2.6 percent to a 717,000 annual rate from March's revised 699,000 pace, which was stronger
than previously reported, the Commerce Dept. reported Wednesday.

The median estimate of 80 economists surveyed by Bloomberg News had called for a rise to 685,000.

Employment gains, cheaper homes and record low interest rates are combining to lift demand and encourage builders to take on projects.

"We are at a point where we see more light and less tunnel", said a senior economist at Barclays Capital
in New York. Residential construction is no longer a drag on the economy and will contribute to growth."

In Las Vegas, new home permits reached 972 through the first 3 months of the year, a 20.5% increase from first quarter 2011. Builders pulled 514 permits in March, double the number from January and February.

Housing analyst Dennis Smith has suggested in recent months that permit numbers would climb as sales activity picked up at new subdivisions.

"We expect the number of permits to continue to improve going into the summer, he said. As the improving pace of new home sales continues in the coming weeks, already low inventory levels will be depleted further."

He showed standing inventory of unsold new homes at slightly more than 200 in mid-April, compared with 450 at the end of last year.

Construction of single family homes climbed nationally 2.3 percent to a 3 month high of 492,000 from 481,000 the prior month. Work on multi-family homes such as Townhouses and apartments increased 3.2 percent to an annual rate of 225,000.

The National Association of Home Builders Wells Fargo index of builders confidence jumped to a 5 year high.