HOUSING STARTS, PERMITS ON THE RISE …
|| By FITSNEWS || We were thrilled to see some good economic news this week … at least for a minute.
Housing starts surged 20.2 percent in April to 1.135 million, according to data from the U.S. Department of Commerce. That’s the second-biggest month-to-month increase ever – sending this volatile economic indicator to its highest level since November 2007. Meanwhile there was a 10.1 percent hike in applications for building permits – sending that measure to its highest level since June 2008.
Six years ago, during the brunt of the “Great Recession,” housing starts plunged all the way to 478,000. By contrast, January 2006 saw a whopping 2.273 million housing starts.
So … this is good news, right?
Yes. Better than bad news obviously. In fact after a dismal first quarter, it’s nice to see anything resembling positive data.
But before we get all “rainbows and unicorns” about the economy, it’s important to remember just how weak America’s economic fundamentals remain. And how pessimistic the immediate outlook remains.
It’s also important to note a jump in housing starts doesn’t always bode well …
(Click to enlarge)
(Chart: Via Zero Hedge)
Yikes …
More to the point the middle class American consumer – squeezed by the welfare statists on one side and the crony capitalists on the other – is still tapped out.
Real economic growth will not materialize until that consumer has disposable income. Which will not materialize until there is real job and income growth. Which will not materialize as long as government is subsidizing entitlement perpetuation, wealth redistribution, crony capitalism, welfare statism and global interventionism.
Oh, and socialized medicine.
15 comments
Thank you Zerohedge. I had a touch of optimism. You cured it.
This is Wall Street grabbing at straws to pump stock sales … The big dump will be about week after next, around June Numero Uno.
With gas prices headed up, those seeking a fixer-upper in the ‘burbs will just have to wait until next year.
(Out here in Taxifornia, the middle income ‘burb swamps are filling up with the subsidized bankrupt, subsidized illegals and early releases from county and state institutions. The Taxifornia employable and employed are heading for parts east where the economic action is … like maybe, South Carolina?)
What you say may be true, but that chart above means nothing. It’s the Northeast and probably not seasonally adjusted. The NE had the worst February weather in years.
Mmmmm … pent up buying aggression fur sure.
Yeah, but I read the NYT piece and they said actually in the Southeast it’s a little flat. But still, what’s good for the Yankee’s eventually trickles down to use dumb southerners.
us dumb southerners.. I mean.. nevermind..
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Who is going to purchase these houses? Illegal Aliens. Meanwhile, more apartments are being constructed because more Americans can not secure a home loan due to very tight lending restrictions.
Can’t blame the lenders for saying if you can’t afford the loan we ain’t gonna sell you one.
Shitloads of new houses in developements w/club houses & community pools going up in Duncan/Lyman area.
Shitload of nice well maintained country homes (20-30 year old with 0.5 – 2.0 acre lawns) for sell in same general area and ain’t moving – Can’t understand why they have not been bought.
Because in rural Spartanburg county you need a security gate, a doberman and a good security system to sleep at night.
Got all three!!
(Except I’ve got a Rottweiller and not a Doberman)
Seriously – Like any other part of the Great State of South Carolina is any better……………………
But I do have a gate, a Rott and a security system….. but i’d have that anywhere I lived in this state – tell me why I shouldn’t…
Good riddance, and take pogo with you!
An old stock broker told me once: “buy on the rumor and sell on the news”. As a now old (well sort of old) real estate broker I think the same holds true. This past week I listed two of my long-time neighbors homes and priced them based on reasonable comps. Both sold in less than three days several thousand above the asking price. This is rare for the area that I live in in the upstate. I think this news is a warning shot.
The banks are already basing new commercial loans on prime moving up.
Please see my comment below concerning new developements in GSP area vs. older but very nice homes in same area.
Your thoughts please
Thanks
Sparklecity
Yup. Those welfare statists in the EU just beat our Q1 GDP year-over-year all to hell. Sure don’t want any of THAT kind of growth. No job-killing, budget busting, anti-American big governments for me. No sir. Won’t have any of it–except Medicare and OASDI. Keep your gubmint hands off MY gov’t program money