Housing stats slowed significantly in October, falling by 10.6 percent to a seasonally adjusted annual rate of 529,000, the Census Bureau and HUD reported yesterday.
Housing starts are 30.7 percent below the October 2008 rate of 763,000. Single-family housing starts in October were at a rate of 476,000; this is 6.8 percent below the revised September figure of 511,000. The October rate for units in buildings with 5+ units was 48,000, down 33.3 percent from 72,000 in September.
Total housing stats are at their lowest level since April, single-family starts are at their lowest level since May and multifamily starts are the lowest in the history of the series, which goes back 50 years.
All regions saw declines in single-family starts; the Midwest had the smallest decline with 4.8 percent, followed by the West, down 5.9 percent; the South, down 7.3 percent; and the Northeast, down 9.6 percent.
Privately owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 552,000. This is 4.0 percent below the revised September rate of 575,000 and is 24.3 percent below the October 2008 estimate of 729,000. Single-family authorizations in October were at a rate of 451,000; this is 0.2 percent below the revised September figure of 452,000. Authorizations of units in buildings with five units or more were at a rate of 85,000 in October.
Privately owned housing completions in October were at a seasonally adjusted annual rate of 740,000. This is 1.9 percent above the revised September estimate of 726,000, but is 29.9 percent below the October 2008 rate of 1,055,000. Single-family housing completions in October were at a rate of 528,000; this is 10.7 percent above the revised September figure of 477,000. The October rate for units in buildings with five units or more was 200,000.
Earlier this week, the National Association of Home Builders reported that its Home Builder Index remained unchanged at 17. According to the index, a reading below 50 indicates negative sentiment; still, the index is up from its low of 9 earlier this year.
Additionally, the Labor Department reported yesterday that its Consumer Price Index rose by 0.3 percent in October, with core inflation (excluding energy and food) rising by 0.2 percent.
Data show the higher numbers were driven by an increase in energy prices in October, as well as higher prices for new cars, used cars and used trucks, all of which saw their highest price jumps since 1980. The Labor Department said the increase in new and used car prices, fueled in part by the Cash for Clunkers program, represented 90 percent of the increase in core inflation. Cash for Clunkers increased demand for new cars and reduced inventory.
Jesus Yinh, a Realtor with Exit Real Estate Group said ” that in the mid Wilshire area of Los Angeles I have seen a slight drop in value the last 6 months, but it appears to have affected the commercial market more than residential.”
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