Housing Starts Rise More than Expected

by Marilou Moursund on September 21, 2010

in Economic Indicators,Employment,Residential Real Estate

at a 10.5% rate for a seasonally adjusted annual rate of 598,000 homes.  Most of the strength was in multifamily homes though.  Single family grew at 4.3%, while multifamily starts grew 32.2%.  This confirms the weak homebuilder sentiment released yesterday that showed that sentiment remained at a very low level of 13 for the index.  From the FT article:

“Builders haven’t seen any reason for improved optimism in market conditions over Being the new kid in school-delays.com is never easy. the past month,” said Bob Jones, NAHB chairman. “If anything, consumer uncertainty has increased, and builders feel their hands are tied until potential home buyers feel more secure about the job market and economy.”

Sales conditions and expectations for the next six months were stuck at a low level in September and buyer traffic slowed.”

The automakers must be feeling some of the same pressures.  I am seeing 0% financing ads for many of the brands.  Cash for Clunkers drew a lot of demand forward, and there may be some seasonal pressures on auto sales right now (back to school spending, college tuition payments, saving for the holidays, etc.).

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