May Housing Starts up 17.2% - Good or Bad? - 06/16/09 12:56 PM
The Commerce Department reported Tuesday that housing starts increased 17.2% to a seasonally adjusted 532,000 annual rate compared to April.  The financial markets responded favorably interpreting this as a sign that the housing market is bottoming.  But is it?
Housing starts are a measure of new construction starts, not sales.  We currently have on average, a 10 month supply of unsold homes and have been at that level for almost 2 years.  Housing prices will not stabilize and the market will not recover until we shrink that inventory level down to a more normal 4 to 5 months. 
With an untold … (0 comments)

 
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Jeff Lutcza

Mortgage Consultant - 147581

Wayne, NJ

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Advisors Mortgage Group

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