Posted on 02/16/2006 8:28:44 AM PST by Grampa Dave
U.S. Jan. housing starts highest since 1973
By Rex Nutting Last Update: 8:30 AM ET Feb 16, 2006
WASHINGTON (MarketWatch) - New construction of U.S. homes soared 14.5% in January to a seasonally adjusted annual rate of 2.276 million, aided by the warmest weather of any January on record. It's the highest rate for seasonally adjusted starts since March 1973. The percentage gain was the largest in nearly 12 years, the Commerce Department said Thursday. Starts of new single-family homes rose 12.8% to a record seasonally adjusted annual rate of 1.819 million in January. The gain in housing starts far exceeded the 2.02 million pace expected by economists. Building permits - which are less affected by monthly weather disruptions - rose 6.8% to a seasonally adjusted annual rate of 2.217 million.
But they are not the high quality housing starts.
~Nancee Pelosee
If my memory serves me right......1972-1974 had the mildest winters in 50 years.
Great...another excuse for the Fed to raise interest rates...
LIBS: "But what about the CHILDREN?!?!?"
It's amazing how all those people working at Wal-Mart and Mcdonalds can afford houses. /s
"But they are not the high quality housing starts.
~Nancee Pelosee"
Yep, a lot of new low quality shacks in N California starting at about 750K or more.
They cant, 60% of the houses sold Here in PHX are investment, think stock market boom, they all think they can flip them and make $$$. I would hold pat right now.
Yep, we can just see the headlines in the NY Slimes, Washington Compost and the LA Slimes:
"Shooter Cheney still hasn't resigned and children, homosexuals, illegal aliens and liberals across the nation hurt most by the new housing starts."
Yep, a lot of new low quality shacks in N California starting at about 750K or more.>>>>>>>>>
From what I can see a low quality shack is about all that sum will purchase in Northern California.
"It's amazing how all those people working at Wal-Mart and Mcdonalds can afford houses. /s"
What is even more amazing is how many homes these Walmart/MCD employees are buying as investments. Rumor is every Walmart employee owns at least 12 homes for investments. They flip one each month and buy another one.
- New construction of U.S. homes soared 14.5% in January to a seasonally adjusted annual rate of 2.276 million,>>>>>>
Do you happen to know enough about this subject to explain whether this figure actually means anything? I am unsure what to make of it.
you just described our house, except, it's 50yrs old.
The new homes here are being purchased by young families. And they are being built at a frenzied pace.
"From what I can see a low quality shack is about all that sum will purchase in Northern California."
There are a lot of new homes in the Eastern Contra Costa and Solano county running from 575 to 750K. 99.999999% of the world's population would probably sell their soul and kill someone to move into one of these shacks.
What I see as crazy re the home market in N California is in the areas where the eco terrorists have prevented new homes from being built. Old homes that need a lot of repair are selling at a million $'s. This has amazed me for two decades in Marin, the Wine Counties, East and South Bay counties around Gay Frisco.
"You just described our house, except, it's 50yrs old."
See my comments in reply #15, and tell us if it applies to your neighbor hood.
http://www.freerepublic.com/focus/news/1579749/posts?page=15#15
"What I see as crazy re the home market in N California is in the areas where the eco terrorists have prevented new homes from being built. Old homes that need a lot of repair are selling at a million $'s."
Why, that's just so UNFAIR. Time to tax these windfall profits to subsidize affordable housing for the homeless. /s
Kind of. I don't think people would be killing to live in our house, though we like it considering what else was available in our price range when we bought. It has appreciated 250k in the 2.4yrs we have owned it. So, I can't really complain. Almost 50% in 28months
"Why, that's just so UNFAIR. Time to tax these windfall profits to subsidize affordable housing for the homeless. /s"
That is exactly what happens when these older homes are sold for a million $'s +. The new buyer pays property tax on the new appraised value. A large % of that new increased tax goes into so called affordable housing for the homeless, poor and illegal aliens.
Correction: But these are only houses for the wealthy because they have received acouple years worth of tax rebates from the Bush tax cut. However, the poor and middle class priced housing is the worst its been since the Hoover administration because the tax cuts only went to the rich.
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