Remember the cold and snowy winter? It was used as the excuse for every negative economic report over the last six months. It’s now July. If housing starts were delayed due to bad weather, there should have been a strong bounce back in the Spring and Summer. Plus, this is when people buy and sell houses because they don’t like to move when their kids are in school. Maybe it was too warm. Maybe it was too sunny. Maybe the corporate MSM propaganda machine has to come up with a new storyline to feed the ignorant masses.
The June figures were released today and they show a collapse in housing starts and permits. Housing starts were 13% BELOW the expectations of the millionaire Wall Street economists. They were 9.3% BELOW the DOWNWARDLY REVISED May numbers. The single family home starts were the lowest since November 2012. April was revised lower too.
So let me get this straight. Home prices have risen 25% since 2012, but housing starts are exactly where they were in 2012. Yeah, this is a strong healthy market driven housing recovery. No Federal Reserve/Wall Street scheme to enrich the oligarchs here. This surely benefits first time home buyers with trillions in student loan debt.
Please show me the housing recovery on this chart. The current level of single family housing starts is at the same or lower levels of every recession dating back 45 years. They are 65% below the most recent peak. They are 50% below the long term average. With the lowest mortgage rates in 50 years, this is all we got?
The housing market is rolling over and headed down again. Any dupe that got lured into buying a home in the last two years is going to get it good and hard as prices tumble again. Some people never learn.
Housing Starts Tumble, Miss Most Since January 2007; Permits Have Biggest Two-Month Plunge Since Lehman
Submitted by Tyler Durden on 07/17/2014 08:55 -0400
“Epic disaster.” Those two words best explain what just happened with US housing starts and permits in June.
Those who want a slightly more detailed narrative of what the Department of Commerce just reported here it is: in June housing starts were expected to print at a solid 1020K, to validate the sustainable “recovery.” Instead, what happened was that the May downward revised number of 985K, which was a consensus beating 1001K last month, crashed to 893K, a drop of 92K which was the biggest since the January “polar vortex” effect, the biggest miss to permaoptimistic expectations since January 2007, and which brought the total number of starts to the lowest level since September 2013. Was it the harsh weather’s fault this time too?
Biggest miss since January 2007!
The reason for the collapse: a plunge in both single and multi-family starts, so one can’t blame the end of Wall Street’s distressed buying frenzy for this one. In fact, single-family starts cratered to 575K – the lowest since November 2012!
But where things got really ugly was in the permits data, which plunged from 1005K to 963K, far below the expected increase to 1035K. This too was the weakest print since the polar vortex low of January when permits were a measly 939K.
And unlike Starts, here one can blame Wall Street for giving up on the multi-family sector: the so-called “built to rent” permits plunged from 363K to 301K. Considering the April number was 436K, this was the biggest two month drop since, well, Lehman.
Yup: weather.
The recovery of 2009 goes on.
The Quinn economic indicator has shown an uptick in my area. An empty video store has a new Dollar Tree outlet coming soon. Think of the great jobs being created there.
Speaking of housing ….. just found this today
HALF of America lives in the dark blue counties. HALF!!! This is where libfuks, demfuks, and repubfuks hand out all the Free Shit. This is how the Head Nigger got elected.
The rest of you don’t matter.
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Stucky, I have never, more than now, wished to live in a gray area.
The grayer the better since war logic tells me they lock down the cities first, and nearest their forts and outposts.
I wish to be far, far away, from the shite.
You’re so negative… This means there is more potential for building to take place, and more potential for houses to go up in price due to all the pent up demand which has been priced out. This is positive for the market overall.
NRA