Housing Starts on single-family homes took a step backwards last month, falling month-over-month for the first time since January.
A “housing start” is new home on which construction has started.
Don’t let the slowdown fool you, however – the housing market’s recovery is still very much underway.
- Sales volume is up in most cities
- Home values are up in most places
- Low mortgage rates are making homes affordable
Builders were bound to take a construction breather sometime – especially with the looming expiration of the First Time Home Buyer Tax Credit. The last thing they want is to be saddled with excess supply.
Some of the news coverage categorized August’s Housing Starts as troubling. That’s likely overstating it. One down month after 8 consecutive increases is not only acceptable, but it’s expected, too.
Single-family starts are up 34 percent on the year. The housing market is recovering just fine.