Post by jeffolie on Jul 17, 2013 6:57:21 GMT -6
July 17, 2013
Housing Starts declined in June to 836,000 SAAR
by Bill McBride on 7/17/2013
From the Census Bureau: Permits, Starts and Completions
Housing Starts:
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 836,000. This is 9.9 percent below the revised May estimate of 928,000, but is 10.4 percent above the June 2012 rate of 757,000.
Single-family housing starts in June were at a rate of 591,000; this is 0.8 percent below the revised May figure of 596,000. The June rate for units in buildings with five units or more was 236,000.
Building Permits:
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 911,000. This is 7.5 percent below the revised May rate of 985,000, but is 16.1 percent above the June 2012 estimate of 785,000.
Single-family authorizations in June were at a rate of 624,000; this is 0.6 percent above the revised May figure of 620,000. Authorizations of units in buildings with five units or more were at a rate of 261,000 in June.
4.bp.blogspot.com/-eV4gC7mMrmM/UeaPlo6vCzI/AAAAAAAAbHM/Evl-yJ0ti_c/s1600/StartsShortJune2013.jpg
The first graph shows single and multi-family housing starts for the last several years.
Multi-family starts (red, 2+ units) decreased in June (Multi-family is volatile month-to-month).
Single-family starts (blue) decreased slightly to 591,000 SAAR in June (Note: May was revised down from 599 thousand to 596 thousand).
3.bp.blogspot.com/-w5hKmww11jI/UeaPpABPW8I/AAAAAAAAbHU/Wgfq5BPn7jc/s1600/StartsJune2013.jpg
The second graph shows total and single unit starts since 1968.
This shows the huge collapse following the housing bubble, and that housing starts have been generally increasing after moving sideways for about two years and a half years.
This was well below expectations of 951 thousand starts in June and the lowest level for starts since August 2012. Total starts in June were up 10.4% from June 2012; single family starts were only up 11.5% year-over-year. I'll have more later ...
www.calculatedriskblog.com/
==========================================
US builders start work on fewer homes in June
US builders break ground on fewer homes in June as volatile apartment construction falls
WASHINGTON (AP) -- U.S. builders started work on fewer homes and apartments in June, though the slowdown wasn't enough to suggest the housing recovery is faltering.
Developers began construction at a seasonally adjusted annual rate of 836,000 homes in June, the Commerce Department said Wednesday. That was nearly 10 percent below May's total of 928,000, which was revised higher.
Most of the drop occurred in apartments, where starts fell almost 27 percent.
Applications for permits to build single-family homes rose for the third straight month to 624,000, the highest since May 2008. Overall permits fell to 911,000 in June from 985,000 in May, which was also revised higher.
Despite June's decline, builders started work on 10 percent more homes in June compared with a year earlier. And permits are 16 percent higher than a year ago.
The housing recovery has been helping support the economy at a critical time when manufacturing and business investment have stagnated.
Steady job growth and low mortgage rates have fueled more home sales. The increased demand, along with a tight supply of homes for sale, has pushed home prices higher. That's encouraged builders to start more homes and create more construction jobs.
Confidence among homebuilders rose this month to its highest level since January 2006, according to a monthly survey by the National Association of Home Builders. Measures of customer traffic, current sales conditions and builders' outlook for single-family home sales over the next six months vaulted to their highest levels in at least seven years.
Rising home prices also tend to make homeowners feel wealthier and more likely to spend. That drives more growth because consumers' spending accounts for roughly 70 percent of economic activity.
One concern is that mortgage rates have started to rise from their record lows and could spike further if the Federal Reserve slows its stimulus. Average rates on a 30-year mortgage rose to 4.5 percent this week, the highest in two years, according to mortgage buyer Freddie Mac.
Higher mortgage rates could slow the housing rebound, although most economists aren't concerned. They note that other factors are more important to the recovery, such as steady job gains, economic growth, and an increasing willingness among banks to lend.
Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.
finance.yahoo.com/news/us-builders-start-fewer-homes-123606005.html[/b]
Housing Starts declined in June to 836,000 SAAR
by Bill McBride on 7/17/2013
From the Census Bureau: Permits, Starts and Completions
Housing Starts:
Privately-owned housing starts in June were at a seasonally adjusted annual rate of 836,000. This is 9.9 percent below the revised May estimate of 928,000, but is 10.4 percent above the June 2012 rate of 757,000.
Single-family housing starts in June were at a rate of 591,000; this is 0.8 percent below the revised May figure of 596,000. The June rate for units in buildings with five units or more was 236,000.
Building Permits:
Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 911,000. This is 7.5 percent below the revised May rate of 985,000, but is 16.1 percent above the June 2012 estimate of 785,000.
Single-family authorizations in June were at a rate of 624,000; this is 0.6 percent above the revised May figure of 620,000. Authorizations of units in buildings with five units or more were at a rate of 261,000 in June.
4.bp.blogspot.com/-eV4gC7mMrmM/UeaPlo6vCzI/AAAAAAAAbHM/Evl-yJ0ti_c/s1600/StartsShortJune2013.jpg
The first graph shows single and multi-family housing starts for the last several years.
Multi-family starts (red, 2+ units) decreased in June (Multi-family is volatile month-to-month).
Single-family starts (blue) decreased slightly to 591,000 SAAR in June (Note: May was revised down from 599 thousand to 596 thousand).
3.bp.blogspot.com/-w5hKmww11jI/UeaPpABPW8I/AAAAAAAAbHU/Wgfq5BPn7jc/s1600/StartsJune2013.jpg
The second graph shows total and single unit starts since 1968.
This shows the huge collapse following the housing bubble, and that housing starts have been generally increasing after moving sideways for about two years and a half years.
This was well below expectations of 951 thousand starts in June and the lowest level for starts since August 2012. Total starts in June were up 10.4% from June 2012; single family starts were only up 11.5% year-over-year. I'll have more later ...
www.calculatedriskblog.com/
==========================================
US builders start work on fewer homes in June
US builders break ground on fewer homes in June as volatile apartment construction falls
WASHINGTON (AP) -- U.S. builders started work on fewer homes and apartments in June, though the slowdown wasn't enough to suggest the housing recovery is faltering.
Developers began construction at a seasonally adjusted annual rate of 836,000 homes in June, the Commerce Department said Wednesday. That was nearly 10 percent below May's total of 928,000, which was revised higher.
Most of the drop occurred in apartments, where starts fell almost 27 percent.
Applications for permits to build single-family homes rose for the third straight month to 624,000, the highest since May 2008. Overall permits fell to 911,000 in June from 985,000 in May, which was also revised higher.
Despite June's decline, builders started work on 10 percent more homes in June compared with a year earlier. And permits are 16 percent higher than a year ago.
The housing recovery has been helping support the economy at a critical time when manufacturing and business investment have stagnated.
Steady job growth and low mortgage rates have fueled more home sales. The increased demand, along with a tight supply of homes for sale, has pushed home prices higher. That's encouraged builders to start more homes and create more construction jobs.
Confidence among homebuilders rose this month to its highest level since January 2006, according to a monthly survey by the National Association of Home Builders. Measures of customer traffic, current sales conditions and builders' outlook for single-family home sales over the next six months vaulted to their highest levels in at least seven years.
Rising home prices also tend to make homeowners feel wealthier and more likely to spend. That drives more growth because consumers' spending accounts for roughly 70 percent of economic activity.
One concern is that mortgage rates have started to rise from their record lows and could spike further if the Federal Reserve slows its stimulus. Average rates on a 30-year mortgage rose to 4.5 percent this week, the highest in two years, according to mortgage buyer Freddie Mac.
Higher mortgage rates could slow the housing rebound, although most economists aren't concerned. They note that other factors are more important to the recovery, such as steady job gains, economic growth, and an increasing willingness among banks to lend.
Though new homes represent only a fraction of the housing market, they have an outsize impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to NAHB statistics.
finance.yahoo.com/news/us-builders-start-fewer-homes-123606005.html[/b]