Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 

Blog Home
   Brian Wesbury
Chief Economist
 
Bio
X •  LinkedIn
   Bob Stein
Deputy Chief Economist
Bio
X •  LinkedIn
 
  Housing starts fall 1.5% in July
Posted Under: Data Watch • Home Starts • Housing
Supporting Image for Blog Post

 
Implications: Housing starts came in at a 604,000 annual pace in July, slightly beating consensus expectations.  While this was lower than last month, the level of starts remains far above levels we saw earlier this year, supporting our view from a few months ago that the dip in home building in the Spring was due to the unusually harsh tornado season. The decline in July was due to single-family starts, which fell 4.9%.  In the volatile multi-family sector (which has been trending higher since late 2009), starts rose 7.8%.  After rising last month, the total number of homes under construction fell again – to the lowest level on record (since at least 1970).  This decline was largely due to the fact that building completions rose 11.8%, to the highest level in over a year.  We should see a shift again next month to fewer completions and rising starts as the housing market slowly recovers.  Based on population growth and "scrappage" rates, home building must increase substantially to avoid shortages in some regions of the country and with the ongoing shift toward renting rather than owning, growth in multi-family construction should continue to outpace the growth in single-family units.  In other news this morning, import prices rose 0.3% in July.  Overall import prices are up 14% in the past year and up 5.5% excluding oil.  Export prices declined 0.4% in July but are up 9.8% in the past year.  Ex-agriculture, export prices rose 0.2% in July and are up 8.3% in the past year, the largest increase on record (dating back to the mid-1980s).

Click here to view the entire report.
Posted on Tuesday, August 16, 2011 @ 10:40 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.