US Dec housing starts up 5 pct, highest since 1986

Reuters ^

[RCW2001]

WASHINGTON (Reuters) - U.S. housing starts surged 5 percent in December to their highest level since mid-1986, the government said Tuesday, as the lowest mortgage interest rates in almost 40 years proved irresistible to buyers.

Permits to break ground, an indicator of builder confidence in future business, also jumped to the highest level in more than 16 years, the Commerce Department said. Single-family permits set a record in December.

Housing starts rose to a seasonally adjusted annual rate of 1.835 million units last month from an upwardly revised 1.747 million rate in November. Single-family starts were at their highest level since 1978.

Starts defied expectations of analysts polled by Reuters, who had forecast 1.678 million starts in a relatively wet month.

Copyright 2003, Reuters News Service

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[Miss Marple]

Good news on the home front!

I am sure any minute now someone will show up to tell us that this is really a sign that the economy is going to tank.

[buffyt]

I know they are building new homes here right and left. Most of them are 3000 to 4000 square feet. A friend just built one that is 2500 sq. ft. for about $400K. They are selling them faster than they can build them around here. Texas Gulf Coast, south of Houston.

[buffyt]

Just think of all the businesses that benefit from building a new home. From the cement slab, to the wood frame, the bricks, the mason, the electrical, the roofing, paint, furniture, blinds, drapes.....

[Miss Marple]

Building a ton here in the central Indiana area, too.

I used to work for a furniture store, and they paid very close attention to new housing starts, because our sales would go up as the housing did. People who move into a new house usually are moving into a larger one (except for empty nest folks) and usually need furniture for an additional room (dining room, formal living room, extra bedroom, etc.) PLUS in a new house they often don't like their older furniture and want to replace it.

If you think about it, every time you move, even if you don't buy furniture, you end up buying new shower curtains, wastebaskets, shelf paper, etc. New homes, however, usually call out for larger ticket items...PLUS all new homes have new appliances!

[Grampa Dave]

This news will drive the left wingers of gloom and doom like the Da$$hole and the Pelo$i into a deeper depression.

Our son and his wife live in eastern Contra Costa county in N California. The new house starts and sales in that area have not slowed down.

The low interest rates enable people to buy their first home or to upgrade. Then once they are in for a year or so in this area, they can refinance to improve their homes, cut their monthly payments and buy items they need or want.

One of my wife's best friends is a realtor of homes in our area. So far in January she has got two buyers for homes sold at over $1 million.

After we dispose of the Islamofascist rulers of Iraq, Iran and Syria this year, oil prices will plummet as Opec disappears.

Less terrorism from the middle east, lower oil prices and GW's economic plan will drive our economy upward and out into the future. This will make the rat politicians even more desperate for an issue. They will be back to pushing abortion and the race card as their pitiful issues.

[Grampa Dave]

Here is the big ticket item re new homes for our economy at the end of this reply from you: PLUS all new homes have new appliances!

There are new furnaces, air conditioners, water heaters, dishwashers and often new refrigerators or the family buys new refrigerators and washers and dryers for their new home.

Then the carpeting and basic interiors of the new homes will help a lot of American Industries. Each new sink requires new faucets. Each new bath requires a new toilet.

[dfwgator]

It's also people recognizing that they're better off putting money into a house than in the stock market.

[dirtboy]

Try instead homes being bought by a wide variety of people mostly because interest rates are so low, they can afford more house for the same monthly mortgage payment.

[dirtboy]

It's also people recognizing that they're better off putting money into a house than in the stock market.

Real estate can be just as much as a bubble as any dot-com stock. Someone who buys high gets hammered either way.

[LS]

Dave, first, yes, I gave! Second, you are absolutely right. This will drive the "gloomsters" crazy, except they will say, "SEE, more of a coming credit crash due to the 'overbuilding' of houses!'"

[Grampa Dave]

Also, home owners ofter become conservatives or even stronger conservatives.

Poohbah has a saying, and I can't remember the exact words, but it goes something like "Property Taxes and Crab grass makes stronger conservatives~~~~~~~"

Hopefully Poohbah will chime in with his words here.

Also, in areas where the property value goes up and interest rates remain low, the refinancing that is done every 2-4 years is a real positive for the economy.

[Fred Mertz]

What's Willie Green's take on this?

It sounds like good news to me.

[Poohbah]

The quote is "Property taxes and crabgrass have made more conservatives than all the ruminations of William F. Buckley, Pat Buchanan, Rush Limbaugh, and David Horowitz combined."

[Grampa Dave]

Willie will find out that some builder bought out another builder and laid off ten workers that were no longer needed. Willie will be sad and post that saddeness.

Also, Willie will insist that we tax payers fund a whole lot of mass transit hot air schemes in these areas that are growing. Of course we need guys with brown shirts and lugers to make conservatives get out of our SUVs and spend 6 hours round trip on Mass Transporation versus 1 to 2 hours in our SUV's.

Having said that, I like Willie. We know where he stands, and he doesn't play games about where he is coming from like some do here. I would take Willie as neighbor versus a whole lot of phonies who post here in FR.

Fred, like you I see this as good news. The economy will reflect it after we whack Uncle Soddomite and the Iran Murdering Mullahs. That will be the end of OPEC. Oil prices will drop about 50%. That coupled with GW's economic package and these new homes and the tax rebates will bury the rats economically in 2003/2004.

[Grampa Dave]

Thanks for your words of wisdom. Too bad this won't fit in your tag line. It is filled with reality and truth:

"Property taxes and crabgrass have made more conservatives than all the ruminations of William F. Buckley, Pat Buchanan, Rush Limbaugh, and David Horowitz combined."

[Poohbah]

Wasn't it Kristol who said that many conservatives were liberals who got mugged by reality, or am I thinking of someone else?