Housing Starts Weak

posted on November 23rd, 2009 filed under: Real Estate News

National housing starts data were released on Wednesday and it wasn’t pretty.  Economists expected 600,000 starts, but the figure turned out to be 529,000.

That’s a big miss by any measure, but it’s especially significant because it created doubt about the perceived housing recovery.  At best, the homebuilding sector is bouncing along the bottom.  At worst, it’s still in a downtrend.  Time will tell.

HousingStarts07-09.112309

In any event, the long-term chart suggests we can’t go too much lower (shaded bars indicate economic recessions):

HousingStarts.112309

These are national figures and do not dictate the direction of the real estate market in Coral Gables or Miami.  But it would be foolhardy to think that South Florida — poster-child for the real estate boom and bust — will not track the national data in this cycle.

Be careful out there.  Ignorance is risk.

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posted by // This entry was posted on Monday, November 23rd, 2009 at 8:37 am and is filed under Real Estate News. You can follow any responses to this entry through the RSS 2.0 feed.

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