Economic Reports, Real Estate

Housing Starts Rise In 8 Months Out Of 9 This Year

October 21, 2009 by · Leave a Comment 

Housing Starts Maintain Momentum in 2009
Housing Starts Maintain Momentum in 2009

Housing Starts on single-family homes gained last month, marking the 8th time that’s happened this year.

A “Housing Start” is a home for which the foundation has been excavated and, considered alongside other key market metrics, September data suggests that the housing market has stabilization is complete.

Momentum in housing is overwhelmingly positive:

Despite the positive news, the press is calling September’s Housing Starts data a “bummer“. Citing a drop in monthly building permits, the media purports that housing will slow in the months ahead. 

The conclusion may be right, but the rationale is may be wrong. 

The probable cause for fewer permits isn’t that the housing market is overdone.  It’s that home builders are choosing to exercise caution given the pending expiration of the First-Time Home Buyer Tax Credit and a still-growing number of foreclosed homes. 

It’s unclear what housing demand will be beginning in December and the last present a builder wants for the holidays is an excess of inventory.

It makes sense that building permits are down, in other words.

Looking back at February of this year, there’s a host of signs that housing is on the path to recovery.  Now, that path won’t be a straight line and there’s bound to be setbacks, but September’s Housing Starts is not one of them.

Housing Starts are up 40 percent on the year.

Need more expert advice? Ask the team of Certified Mortgage Planning Specialists at Benchmark Mortgage.

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James K Barath, CMPS®

James K Barath is a Certified Mortgage Planning Specialist®, Certified FICO® Professional, Certified Military Housing Specialist® and your FHA Home Loan Expert. He is also a graduate of Purdue University, The CMPS Institute, Dale Carnegie Human Relations Course & Napoleon Hill Foundation's PMA Science of Success Class. It's your home and your future. It's his profession and his passion. He is ready to work for your best interest. Contact James for your FREE Home Loan Approval !  His Motto: I Facilitate the American Dream Through Responsible Mortgage Lending and Financial Literacy!

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