–Starts Sectors: 1-Fam Up Gains on Advance in South, NE
By Joseph Plocek
WASHINGTON (MNI) – The U.S. October housing starts data were a
mixed bag that suggest a slow push upwards for housing despite
decades-low interest rates and good affordability.
Starts printed -0.3% to a still above-expectations level of
628,000, and permits printed +10.9% to 653,000, suggesting some builder
optimism that demand will improve ahead.
Starts weakness was centered in 5+ units at -13.3%. Single family
starts were up 3.9%, but gains were in the South and Northeast regions.
The other two regions dipped. Starts are steady to up a little but still
skating around a weak level; the gain is +16.5% over the year.
Permits were up 5.1% for singles and +29.5% for 5+ units. The only
spots of weakness were in multis in the Northeast and single-unit
starts in the Midwest.
Unadjusted permits, running in the 40-thousands last year at this
time, are now up to the 50,000+ area. They are up marginally in the
year-to-date over last year’s total through October.
Completions were down 5.7% in October and units under construction
+0.7%, hardly robust numbers.
Overall, the housing numbers show small improvement. In Q1, average
starts were 582,000, in Q2 they were 572,000, in Q3 610,000, and October
is starting Q4 at 628,000. Among the reasons housing remains in the
doldrums could be lack of consumer confidence and bank credit
restrictions that make it harder and drag out the process to qualify for
mortgages.
**Market News International Washington Bureau: (202)371-2121**
[TOPICS: MAUDS$,M$U$$$,MT$$$$,MAUDR$]
