Today’s New Residential Construction Report suggested a possible slowdown of the tepid recovery seen recently in the new home construction market with a notable drop off in permitting activity since March.Single family housing permits, the most leading of indicators, dropped 11.5% on a month-to-month basis to 606K single family units (SAAR) while remaining 15.9% above the level seen in April 2009 and still remaining an astonishing 73.08% below the peak in September 2005.
With the substantial headwinds of rising unemployment, epic levels of foreclosure and delinquency, mounting bankruptcies, contracting consumer credit, and falling wages, an overhang of inventory and still falling home prices, the environment for “organic” home sales remains weak and likely very fragile.
