Single-Family Housing Starts Hold Steady For The 8th Straight Month
Single-family Housing Starts idled last month, dropping just 3,000 units from the month prior, or 0.2%.
According to the Commerce Department’s report, February marked the 8th straight month in which Housing Starts straddled the half-million marker, dating back to June 2009.
This is a different slant on the Housing Starts story as told by the press.
Most publications are reporting that Housing Starts fell 5.9 percent in February. Technically, this is true. Housing Starts did fall 5.9 percent last month. However, the Housing Starts data is comprised of three parts:
- Single-Family Housing Starts
- 2-4 Unit Housing Starts
- “Apartment Building” Housing Starts (i.e. 5 or more units)
The press tends to lump all 3 together but that’s not relevant for everyday homeowners and buyers.
2-4 unit homes, and apartments and condos are a different housing class as compared to single-family homes and are notoriously volatile, too. Single-family starts are more steady and better reflect the country’s housing stock.
Single-family housing starts are up 32 percent over the last 12 months.
Meanwhile, the pace of new buyers has not kept up with the pace of new housing stock. Therefore, because home prices are based on supply-and-demand, the price for a newly-built home was down, on average, 7 percent nationwide in January.
With the federal home buyer tax credit expiring soon, home buyers will likely create new demand for homes. And with Housing Starts holding steady near 500,000, that should push prices higher through the spring months.
Related posts:
- Single-Family Housing Starts Fell In January, Despite What The Headlines May Have Told You
- Single-Family Housing Starts Fade In July
- Housing Starts Rise In November, But With A High Margin Of Error
Michael Haigh has 20+ years of professional experience in the banking and mortgage industry. He has the knowledge, education, and dedication to get you the best loan for your situation, answer your questions honestly and completely, and make your mortgaging experience a pleasure. His reputation includes being the number one lender in the country for CitiBank for 9 years, then at Chase for 1 year and now with WJ Bradley since August of 2009. This is because of the quantity of loans, myriad of people he's helped, and his dedication to helping his clients find the perfect loan for them.
