Housing starts surge on apartment construction
Single-family starts continue decline to 17-year low
By Rex Nutting, MarketWatch
Last update: 8:30 a.m. EDT May 16, 2008
WASHINGTON (MarketWatch) - U.S. home builders broke ground on 8.2% more homes in April, led by a 36% increase in multi-family units, the Commerce Department estimated Friday.
Housing starts rose to a seasonally adjusted annual rate of 1.032 million, far more than the 954,000 estimated for March or the 939,000 expected by economists surveyed by MarketWatch. It was the third increase in the past four months.
Starts of single-family homes declined for the 12th straight month, falling 1.7% to a seasonally adjusted annual rate of 692,000, the lowest since January 1991.
The increase is certain to bolster the argument of those who see a bottom in the housing slump. Others say that market suffers from a severe oversupply of homes and the last thing the market needs is new construction.
snip
“March’s revised reading of 954,000 but 30.6% lower than April of 2007”
The only part of the article that matters.
I think we need a financial press version of Newsbusters. The spin that seeps out of the financial MSM is pure sewage.
As soon as the masses trying to sell their present homes wake up to the reality their place isn't worth what they think it's worth but only what someone will pay them for it, the next housing market cycle will begin. Also, given the depth of this housing pull back I expect when the market turns it will climb sharply due to the "compressed spring" phenomenon that says when a market is pushed down sharply and quickly the rebound is just as quick. And while I do not expect housing prices to immediately climb to 2004-5 levels I do believe they will be much higher in 2 years then they are today.
I don't think there has ever been a better time to buy a new home then now with prices heavily discounted and mortgage rates as low as they are.
But...but....the BUBBLE! WHERE’S MY BUBBLE?.........
Bottoming out or dead cat bounce?
Breaking news??
IMO, This increase reflects local, independent builders taking advantage of the vacuum left by the national volume builders (tract builders) who pulled out of many regional markets.
The tract builders sell off their remaining lots at a discount when they pull out. The local guys build a better, custom quality home that makes the tract guy’s houses look like shipping crates.
In a nicely situated subdivision, which house do you think a buyer would prefer to purchase given that each home was in the buyer’s price range?
This is not a good thing. Right we need to burn off the housing inventory before prices can start to rise again. Building new homes in a declining market only adds to the inventory supply and works to lower prices further.
baffling. One would expect the “old” homes to be sold first, but what do I know and good news are good news.
For a variety of reasons, including political bias, ignorance of economics, and a lack of basic analytical/statistical skills, the press has a three to six month lag on major economic issues.
The U.S. economy decidedly turned positive in the first quarter of 2008, even though GDP only grew by 0.6%.
Growth is improving in the current (second) quarter, and absent the usual “stupid human tricks” by the Fed and politicians, the third and fourth quarters could be very, very, good.
However, you won’t see any economic good news in the press until the second Wednesday of November at the earliest, and then only if a dim is elected President.
“Total housing starts got a boost from multi-family homes” SIngle-family was at lowest level since 1991. This is not good news.
Just moved into a new tract in Bakersfield, Ca. Empty lots are being filled in short order. I’m stuned, I tell ya!