U.S. Jan. housing starts highest since 1973

http://www.marketwatch.com/News ^ | Feb 16, 2006 | Rex Nutting

[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.

[3dognight]

"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.

Our local tv had a story on last night about the number of homes being torn down to be replaced by new houses. Alot of extreme makeovers going on in the Mpls, St. Paul and the suburbs. Of course there are some whining about the large size of the houses that are being built. They would rather people be stuck in some 1950's rambler.

[Grampa Dave]

"Our local tv had a story on last night about the number of homes being torn down to be replaced by new houses. A lot of extreme makeovers going on in the Mpls, St. Paul and the suburbs. Of course there are some whining about the large size of the houses that are being built. They would rather people be stuck in some 1950's rambler."

We have friends whose daughter is finishing up her Master's degree and her finance is working on his doctorate degree in the Mpls/St Paul area. These young people cancelled wedding plans that were getting out of hand and asked for the money to be used as a down payment on a little two bed room rambler/cottage and funds to re do their new home.

Re wanting someone to live in a small rambler versus a bigger new home is typical of the mental illness that left wingers suffer from.

[NaughtiusMaximus]

One of the best remarks I've ever come across on the current housing situation is that what we consider "THE POOR" in America currently live under 1950's housing conditions. And although that's not optimal, those of us who lived in the 1950's aren't likely to describe ourselves as "deprived."

[3dognight]

I agree, I think much of it is jealosy by the neighbors that are next to the house being torn down and replaced with something newer/bigger. Of course their own house and land values are going up too.

Some of it may be nostalgia also - seeing their neighborhood being replaced might be hard too. Anyways the 1950's houses definitely beat 95% of the housing in the world, so our poor can't be doing to badly.

We live in a house from the 1920's and even with the amount of work we put into it, I often feel like putting a bulldozer to it and starting fresh.

[NaughtiusMaximus]

The house I grew up in was built in 1951. There were 4 of us with 1 bathtub bathroom, 3 bedrooms. Overall, about 1000 square feet. But I never felt claustrophobic. Heck, I would have said we were rich. Nowadays, I've had retired couples turn their noses up at similar houses, "Too cramped."

[talleyman]

"We're doomed!" (Whose turn is it to ping Willie Green?)

[agrarianlady]

It has appreciated 250k in the 2.4yrs we have owned it.

Which means your property tax payment will be going up. :-)

But seriously, these housing starts numbers are both good and bad. Good only if there's enough buying out there to support it. Right now here in the exurbs of DC I'm staring out the window at a brand-new empty house. It's been empty for a year. No buyers.

[jw777]

only if they re-assess. which they have not, yet.

[Grampa Dave]

I never inflict pain on myself during moments of joy!

So I will pass. :)

[demkicker]

Psssst, don't tell the gloom & doom media who I saw on CNN, ABC & Fox News this morning wringing their wrists about the housing slow down & pending interest rate hikes.

[ContemptofCourt]

You guys are funny....look at all of the data...there is a serious glut of housing right now, and the bubble is phhfffftttting as we speak.

Why would the housing starts in Jan be so high? Well, lets take into consideration KB Homes recent statement that their cancellations have spiked. Did you ever think that these homebuilders are trying to beat the bubble and lock people in before they can cancel on them?