New Housing Starts Decline 10% in May (unexpected, again)

Real Estate Channel ^ | 06/16/2010 | Michael Gerrity

[OldDeckHand]

According to the U.S. Census Bureau and the Department of Housing and Urban Development's jointly announced new residential construction statistics for May 2010, privately-owned housing units authorized by building permits in May were at a seasonally adjusted annual rate of 574,000. This is 5.9 percent (±2.2%) below the revised April rate of 610,000, but is 4.4 percent (±2.6%) above the May 2009 estimate of 550,000.

Single-family authorizations in May were at a rate of 438,000; this is 9.9 percent (±2.1%) below the revised April figure of 486,000. Authorizations of units in buildings with five units or more were at a rate of 117,000 in May.

Privately-owned housing starts in May were at a seasonally adjusted annual rate of 593,000. This is 10.0 percent (±10.3%) below the revised April estimate of 659,000, but is 7.8 percent (±9.7%) above the May 2009 rate of 550,000.

Single-family housing starts in May were at a rate of 468,000; this is 17.2 percent (±7.9%) below the revised April figure of 565,000. The May rate for units in buildings with five units or more was 112,000.

[OldDeckHand]

More here, from Bloomberg...

U.S. Economy: Manufacturing Powering Recovery as Housing Slumps

[Lorianne]

We have a 9 year overhang in real estate.
What part of that is diffucult for these people to understand?

[Wyatt's Torch]

For anyone paying even partial attention to the housing market, this should not be “unexpected”. The homebuyer tax credit expired in April. that led to a pullforward of demand. May declines. Economics 101...

[ILS21R]

Howard Fineman style: New Housing Starts Curiously Decline 10% in May

[Tzimisce]

Why am I unemployed? Someone needs to hire me as an expert.

I can be “shocked” every month when my predictions turn out to be wrong. And I can do it for half what you’re paying these other experts.

[Gabrial]

The Harvard scholars just can't understand. Let me try to help.

No Job -—> No Money -—> No House

Now that was not too hard, was it?

[OldDeckHand]

"Now that was not too hard, was it? "

Double digit unemployment and they're expecting a rebound in the housing market. They're insane.

[hinckley buzzard]

With the expiration of the 'cash for houses' scam, the rate of homebuilding tanked. Now who is it that would not have "expected" this? What "expert" didn't figure this out ahead of time?

Moral of this story: don't assume anyone is an "expert" just because some asshole pays him for his opinion.