July Housing Starts

Housing starts for  July  came in at   546,00   up from  a revised 536,000 in June, representing a 1.7% incrase  but lower than expected.( Without the revision the number would be less than in  June) expected . Permitscame in at 565,000 which is lower thant the dowardly revised June number 583,000, representing a 3% decline.

My take:  I am not all that sanguine on new construction numbers. The immediate problem we have now is inventory- that’s due to lack of buyers and that’s due to high unemployment and so on, but inventory is the issue.   Becasue of that I am not all that upset that new supply is not not coming in at ”expected”levles. We are still in a bottoming out phase and a limitted supply is not a disaster.