On the heels of yesterday’s Housing Market Index, we have Building Permits and Housing Starts (both of these also a measure of the construction industry) released today. The released numbers were 5% and 12% less than the respectively anticipated data. I will reiterate the stance I took yesterday. With the supply of existing homes on the market dwindling, a boom in newly constructed homes is on the horizon.
After taking a mild dive last month, Housing Starts are up 3% in March to an annualized rate of 946,000 new units, missing expectations but still a positive. On the other hand, Building Permits fell 2.4% so next month’s Starts might not look so pretty. This is surprising to me given that builders had a rough winter, existing inventory is down, and the spring home buying season is in full swing.