Today’s New Residential Construction Report showed that single family permits went flat while single family starts declined notably from last month with both measures continuing to show sight year-over-year declines.
Single family housing permits, the most leading of indicators, remained flat from last month at 404K single family units (SAAR), dropping 1.22% below the level seen in July 2010 and an astonishing 77.53% below the peak in September 2005.
Single family housing starts declined 4.9% to 425K units (SAAR), dropping 0.93% below the level seen in July 2010 and a stunning 76.69% below the peak set in early 2006.
With the substantial headwinds of elevated unemployment, epic levels of foreclosure and delinquency, mounting bankruptcies, contracting consumer credit, and falling real wages, an overhang of inventory and still falling home prices, the environment for “organic” home sales remains weak and likely very fragile.
