Apr
16

The Housing Market is Recovering

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Housing Starts for March rose to an annual rate of 626,000, higher than estimates of 610,000…and representing the highest level of Starts since November 2008.  Housing Starts are up 20% from a year ago.  Adding to the positive tone of the report was an upward revision to February’s release, which was revised to 616,000 from the 575,000 previously estimated.  Building Permits, which are an indicator of future new construction, increased 7.5% in March, moving to a 685,000 annual rate, which was higher than the 625,000 expected.  Overall this was a pretty strong report, and was likely fueled by improving weather conditions around the country.  Housing Starts are a double edged sword…as seeing more new construction of homes is more representative of builders sentiment and speculation rather than actual purchases.  As we know, builders have been wrong in the past.  But still, it’s good to see that builders are optimistic.  As we said, this good news cuts both ways.  More new construction adds to an already bloated inventory, which may actually be more of a drag on housing.

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Categories : Housing Market

Comments

  1. hcg says:

    I can see what you mean. Fantastic tips and they’ve truly opened up my own eyes to the probability of what you really are saying. You sure do have got a lots of comments about this article!

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