may housing starts: May Housing Starts up 17.2% - Good or Bad?
- 06/16/09 05:56 AM
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)
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?
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