Nationwide housing starts and permits declared significant gains in June as home builders responded to better market conditions and the impending expiration of the first-time buyer tax credit, according to information released by the U.S. Commerce Department.
Click “read more” to view a detailed breakdown of total housing starts, single-family starts, permits, and homebuilder sentiment.
Total Home Starts June 2009
Seasonally-Adjusted Annual Rate: 582,000 units
One Month Change: Up 3.6%
One Year Change: Down 46.0%
Seasonally-Adjusted Annual Rate: 470,000 units
One Month Change: Up 14.4%
One Year Change: Down 28.2%
Total Building Permits: 563,000 units
One Month Change: Up 8.7%
One Year Change: Down 52.0%
“Although today’s HMI is positive news that helps confirm the market is bouncing around a bottom, the gain was entirely contained in the component gauging current sales conditions, while the component gauging sales expectations for the next six months remained virtually flat for a fourth consecutive month,” noted NAHB Chief Economist David Crowe.
“Builders recognize the recovery is going to be a slow one and that we are facing a number of substantial negative forces.” For example, said Crowe, a quarter of all new-home sales are falling through due to appraisal issues that are tied to the use of distressed and foreclosed properties as comps.
“This is a tremendous obstacle for a housing market that is struggling to get back on its feet, as is the lack of available credit for acquisition, development and construction financing.”
Home Builder Outlook on the Future
Note: A score over 50 means more builders view conditions positively, a score under 50 means more view them negatively.
Overall Builder Confidence: 17
One Month Ago: 14
Sales Over Next Six Months: 26
One Month Ago: 26
Traffic of Prospective Buyers: 14
One Month Ago: 13