Housing Production Should Stabilize Soon

 

National Association of Home Builders believes that total housing starts have hit bottom in the current quarter. The drag on GDP growth from the long downtrend in residential fixed investment should ease during the second half of the year and housing production should provide positive growth contributions by early next year. - Courtesy of Shriver Air Force Base

The housing market still is saddled with large numbers of vacant units, both for-sale and for-rent and the foreclosure wave obviously is adding to the inventory problem facing home builders. But starts of new units recently hit record lows, particularly the for-sale components of the single-family and multifamily sectors. The recent firming of home-buyer demand should lead to some improvement in the pace of starts. This is good news in the face of recent building industry trends.

The government?EUR??,,????'???s preliminary numbers for May show a bounce-back from the record low in April. Issuance of building permits moved up as well. ?EUR??,,????'??? Courtesy of National Association of Home Builders