U.S. Housing Starts May Have Risen Moderately Last Month

posted on February 21st, 2010 filed under: Real Estate News

The Census Bureau recently reported that housing starts in January rose to a seasonally adjusted annual rate of 591,000, up 2.8% from a revised December figure of 575,000.  The numbers carry a margin of error of about 11%, so the monthly gain is murky.

Compared to a year ago, however, starts are up by 21% with a margin of error of 12%.  So year-over-year, there is clearly more activity.

U.S. Housing Starts -- 1990 to Jan. 2010

Pulling the camera back, the housing industry is clearly struggling to get back to business, compared to previous cycles in which the level of activity made a clear “V’ bottom.

U.S. Housing Starts -- 1960 to Jan. 2010

It will be interesting to see how the data weather the scheduled expiration of the $8,000 homebuyer tax credit.  Contracts must be signed by April 30 and deals must close by June 30, and some of the rebound in starts is believed to have resulted from buyers and builders getting projects underway in time to meet the deadline.  Seems mad for just $8k, but could be true.

These are national numbers and are not necessarily indicative of the real-estate markets in Miami and Coral Gables.  Yet real estate in Miami and Coral Gables followed the national data up in the boom and down in the bust, so give the data some consideration.

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posted by // This entry was posted on Sunday, February 21st, 2010 at 5:45 pm 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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