Nationwide production of new single-family homes rose 4.4 percent to a seasonally adjusted annual rate of 470,000 units in December, according to newly released figures from the U.S. Commerce Department. This marked a third consecutive increase in single-family housing starts, a market where production hit a 50-year low in 2011.

"Today's report adds to the growing evidence that demand for new, single-family homes is finally starting to firm up in an increasing number of markets nationwide," said Bob Nielsen, chairman of the National Association of Home Builders (NAHB). "This emerging trend is allowing builders to put more crews back to work, and could be even stronger if not for the overly tight credit conditions that prevail for both builders and buyers."

At Timber Trading, this report resonates with what we are seeing and hearing in the marketplace. Our expectations are for slow but steady improvement in new, single-family home starts. It looks like the market is finally turning!