Tuesday, June 16, 2009

Housing starts soar...

Wow....

"U.S. builders broke ground on more houses than forecast in May, offering a sign that the industry’s slump, now in its fourth year, may be approaching an end.

The 17 percent increase in overall starts to an annual rate of 532,000 followed a 454,000 pace the prior month, the Commerce Department said today in Washington. Building permits, an indicator of future construction, also rose more than forecast."


Now some of this is playing with the data. Starts "jumped" from the prior month, but are still down sharply year over year....

"The increase in starts was led by a 29 percent jump in the West and a 17 percent increase in the South. They rose 11 percent in the Midwest and 2 percent in the Northeast.

Home starts have still plunged 45 percent from a year earlier, today’s report showed, and are down from a peak annual rate of 2.27 million in January 2006, which capped the biggest housing boom in six decades."

Does anyone think we need MORE homes right now? There is a substantial glut of homes across the country and builders are breaking ground to build more while unemployment soars? That would be like taking over GM and cranking out more cars to fill the lots while demand plummets, oh wait, nevermind.......

Cheers!

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