Housing Starts, Permits Plunge In February As Rental Units Crash
Content adapted from this Zerohedge.com article : Source
Housing starts reversed course from previous months to turn negative in the month of February.
This coincides with dismal sales data in back-to-back months.
A spike in housing starts in January was followed by a 7% plunge in February. Housing permits also dropped 5.7%. Both numbers were worse than what was expected.
Multi-family homes were what led the way for the dismal numbers.
It is too early to call for a downturn in the real estate market but these figures are worrisome. A follow through on this trend could really affect the overall economy.
Non-adpated content found at zerohedge.com: Source
Hoping this rebounds so I can feel comfortble selling my house if I need to, I'd really rather not take a loss on it. Otherwise might become a rental.
So what does it mean rental units crash? Does that mean sale of rental units or just permits?
It's been hard to actually find the skilled workers to build houses, plus it is hard to start building a house in a blizzard.
Informative post ...thanks for this
Great post.. thanks for sharing sir @zer0hedge
Good post sir..thanks for sharing @zer0hedge
This is a sign of a contraction in the economy which has got the housing market off to a weak start. And we shall have residential construction having a huge influence in dragging down growth. I attribute this fall to some factors like shortages of labor, and ready-to-build-lots.
We are building more homes than we can afford, as hedge funds and speculators gobble up hundreds of thousands of properties being cranked out by the homebuilders. When you combine it with Americans burning up those credit cards, when Americans have run up almost a 1 trillion credit card tab. When you add mortgage debt growing by staggering numbers. And last but not least housing loans making up the largest portion of American household debt while income of average family is clearly behind compared to housing prices increase as well as rental units prices. Those housing starts reversing course from previous months turning negative in the month of February,, as you mentioned, as you mentioned, is not surprising at all. As a matter of fact it will get much worse if something doesn’t change. Something like “Miracle”. As a matter of fact it will get much worse if something doesn’t change. Something like “Miracle”. I always look at it from the positive side, since I don’t plan to sell my house for at least the next decade, I welcome lower house prices for proper tax reasons. Lower house prices mean lower property taxes.
Nice post
This is another post with not very good news, for the US economy, let´s see if all this bad speculation is commented by the government.
I don't understand much about this market, but one this is for sure it has a big influence in the whole economy.
great post
thanks for sharing