Housing Slogs Toward Recovery

 

Housing Starts, Total and One Unit Structures.
Courtesy of CalculatedRiskBlog

NAHB/Wells Fargo Housing Market Index stalled at 16 for the fourth month in a row, indicating that builders remain pessimistic about their near-term prospects. Single-family housing starts remained unchanged in January, while some excitement was generated on the multifamily side, although this sector is volatile.

Builders can also derive some encouragement from a new NAHB study predicting that the delay of an estimated 2.1 million household formations will stoke housing demand as the economy strengthens. When housing finally rebounds look for the landscape industry to take full advantage.

On the national economic front, the jobs picture remained unclear in January, with contradictory indications on the growth that is so vital for housing. Despite a soft economy, ongoing increases in energy prices have been driving up producer prices — including building materials — and consumer prices.

– Courtesy of NAHB