- Housing starts in June unexpectedly rose in June as construction of single-family dwellings jumped by the most since 2004.
- This may signal that the market is stabilizing even though unemployment is still worsening.
- the 582,000 number was better than the 530,000 consensus.
“Builders are beginning to see some opportunities to get back to work,” said Mark Vitner (Senior economist at Wells Fargo Securities LLC)
- The increase in starts adds to signs that the housing slump may be nearing a bottom. Combined sales of existing and new homes climbed to a 5.1 million annual rate in may, highest level so far this year.
- US homebuilders are becoming less gloomy about the real estate industry.
“Foreclosures are the one part of the economy that’s getting worse right now, everywhere else the negative numbers are at least getting smaller every quarter.” said Patrick Newport (IHS Global Insight)
Source: Bloomberg, Wells Fargo Economics Group, Barron's & NY Times
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