EdgyDad's Logo
Lot for Sale Design Build 1718 Whittier East Dallas White Rock Lake Texas USA Cycling Certified Coach Ironman CDA 2007 Ironman CDA 2010 Ironman Ironman Wisconsin Biff's Real Estate Company Logo Live Local East Dallas Picture of Biff in Barcelona ad2

Pictures are worth a thousand words!...

Who is EdgyDad?

Husband, father, inline skater, cycling and triathlon athlete and sometimes coach, graduate civil engineer, commercial and residential and commercial Broker Realtor® working in Ellum, Expo Park, Munger, Peak Suburban, PD 98, PD 269, Swiss Avenue, Baylor PD, all of in-town east Dallas, former home building land acquisitions executive, home builder, home designer (chief architect X3 design solutions), LEED Green Associate (GA), NAHB Green Professional (CGP), NAHB Graduate Builder (CGB), Universal Design and Accessability student and Certified Aging in Place Specialist (CAPS), Advanced Historic Home Specialist certified by Preservation Dallas..........EdgyDad is Biff Bailey of Dallas, Texas

Blog Topics

Home Building, Styles, Universal Design
Endurance Sports
East Dallas Real Estate
Cooking Eating for Good Health
Coffee, Coffee Beans, Roasting, Espresso
Big Money, Big Business
Balance and Sustainability

Biff Bailey's Real Estate Home Page

Contact EdgyDad

About EdgyDad

Resource Links Page

Admin Pages

Housing Starts UP 14% in June, 629K Annual Rate, October's Fire Sale?

June House Starts at 629K Annual Rate, trend unchanged. Big builders starting October's fire sale homes again? #p#in

Last Update: 2011-07-20 08:03:08

Get used to the new normal. Slow housing starts, many of them subsidized in one way or another. So far as single family homes, the fact is we don't really need new ones. Not until household formations improve, which will be brought about by....job growth and income growth, which is beyond the scope of this article.

Housing starts rose 14.6% in June, according toCommerce Department data, continuing gains of the prior month and coming in well above most analysts' estimates.

On a seasonally adjusted basis, starts increased to the highest level since January at 629,000, up from a revised 549,000 for May and nearly 17% higher than 539,000 a year earlier.

But, there is no change in the underlying trend, the five month average floating between 550 and 500k since mid-2009.

June is the month big builders target to start the last of the homes they plan to close in a fiscal year. Many times, these starts are budget and forecast driven, not market driven and result in fire sales in October and November.

Below are first a chart of the last few years with the 5 month average line plotted and you can see there's no change in the underlying trend. Second below is a 10 year chart that adds perspective of where we are relative to history -- below any normal we've ever known!


Census Bureau 10 Year Chart of Housing Starts

Analysts polled by Econoday were expecting housing starts to come in at 575,000 with a range of estimates between 550,000 and 600,000. Economists surveyed by MarketWatch projected starts to come in at 580,000 for June.

In a joint release, the Census Bureau and Department of Housing and Urban Development said single-family starts climbed 9.4% in June to a seasonally adjusted rate of 453,000 units, up from a revised 414,000 for May.

June's increase comes on the heels of a 3.5% increase in May. Starts dropped 22.5% in February, which was the largest monthly decline since March 1984.

Building permits in June rose 2.5% to an annual rate of 624,000 from a revised 609,000 for the prior month.

Reader Comments

by: on:

Comments from this Form are Currently Disabled

Your Name:
Your Email:
Privacy Policy
A value is required.Invalid format.
Comments without valid email address may be deleted.
Title Your
Write Your
Comment Here:

Type A74-Bxp/9
to validate yourself

A value is required. Invalid format.