Housing Starts….
by Tom on July 17, 2009
in Market Musings
Housing Starts came in better for June than expected and the largest percentage jump (not units, percentage) since 2004. There have been many people who have said that a bottom in new housing will come before a bottom in existing homes. It’s too early to tell where this trend is going.
The bond market frankly doesn’t like the fact that housing starts are up. Why? Because most markets are dealing with significant inventory issues. When we have too much inventory, adding more accentuates the problem.
If anyone has statistics on how many of the new homes are custom vs. “spec” I’d love to hear them.
Tom Vanderwell
P.S. Mortgage Market Update will be coming shortly.
Housing Starts, Building Permits Show Surprise Increase – Economy * US * News * Story – CNBC.com
New U.S. housing starts and permits jumped in June, propelled by a rise in ground-breaking for single-family homes and suggesting the battered housing sector was beginning to stabilize, a government report showed on Friday.Housing starts climbed 3.6 percent to a seasonally adjusted annual rate of 582,000 units, from May’s upwardly revised 562,000 units, the Commerce Department said. Single-family home starts jumped 14.4 percent, the biggest rise since December 2004. Both overall starts and single-family starts have risen for two straight months.
