Housing starts are down
This year has experienced mixed results with new home pricing on the rise but once again housing starts hitting historic lows.
The US Commerce Department is reporting that housing starts fell 11% in April to a level lower than economists had predicted. Permits dropped 4%, both of which indicate a possible dip in sales this summer as both numbers are used in forecasting.
Single family starts dipped 5% and NAHB chairman Bob Nielsen said, “While mortgage rates are low and house prices are as affordable as they’ve been in a generation, the decline in April’s housing starts is indicative of the low level of confidence that consumers have in the housing market.”
Builder confidence remains relatively low but unshaken and 2011 doesn’t look to be the year of the builder rebound.