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Housing starts and permits sink lower than economists had expected

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.

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11 Comments

11 Comments

  1. Ben Fisher

    May 18, 2011 at 4:20 pm

    Not good news for the economy. Possible double dip in the works?

  2. John Perkins

    May 18, 2011 at 11:29 pm

    This makes total sense. Buyers are now more aware than ever of the amount of foreclosures that banks are sitting on. Plus, I hear it from my Buyers all the time that current "new homes" are still priced to high in comparison to resale housing. I've got emails from New Builders offering me 5% because they can't find Buyers. Not like the mid 2000's when they only offered us 1%.

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