Home construction may still be at low-levels, but the market is improving with 549,000 new housing starts in March of this year.

From February to March 2011, housing starts increased 7.2 percent, according to the Department of Commerce, Department of Housing and Urban Development, and the U.S. Census Bureau. This statistic reverses the trend of February, which saw a 22.5 percent drop in housing starts.

Even so, the industry is not where it was last year. In May 2010, there were 634,000 new constructions, representing a 13.4 percent drop in a year’s time.

Those in the home construction market are optimistic though, even in this up-and-down market, on the heels of this good news about March numbers. The good news is further exemplified by an increase in home-building permits, which grew 11.2 percent from February to March 2011, signaling a rise in future new home activity.