This page has been archived and commenting is disabled.
Housing Permits Plunge To 7-Month Lows Despite Decade-High Homebuilder Sentiment
Having missed for the last 2 months, Housing Starts bounced 6.5% in September back to cycle highs (which previously occurred right before the last recession). The South and West regions both saw housing completions drop notably (as The Midwest soared as housing starts slid in that region). However, the more forward-looking Building Permits remains well off the June pre-reg change spike highs. Despite soaring homebuilder sentiment, permits plunged to 1.103mm SAAR - the lowest in 7 months - thanks to a collapse in multi-family permits to the lowest since 2014.
Starts bounce to near cycle peak highs...
Driven by a surge in multi-family (rental) units:
But Permits plunged
Driven by the continued collapse in multi-family (rental) units, which likely means that rents will continue rising to recorder levels for the foreseeable future as the relentless demand for rental housing will not be satisfied for a long time.
Whicvh is odd because builds said they were full of hope for the future...
Charts: Bloomberg
»
- 6629 reads
- Printer-friendly version
- Send to friend
- advertisements -
We should all prepare to live in the sewers.
homebuilders are confident, home buyers are not
Look at it this way. Al Gore puts an addition on his energy gobbling humongoloid bazillion sq/ft mansion. It only counts as one permit but could house thousands.
So what's the problem?
You forgeot to mention the location is where it would be under water when the icecaps melt away (NOT).
You lead and I'll put the lid on it at no charge.
There's never been a better time to buy a home ...but you don't qualify.™
There's your answer. Purge all individual credit data older than 7 years.
This is the final end game! The sky is falling! Run for the hills!
Yawn......since many years the same on ZH
Nice chart porn. Thanks for the woody.
Can't wait for the rent riots, squatters, exponential rise in homelessness, all positive for the NAR and Wall St.
This is positively, absolutely, without a doubt the very, very best time to buy a home, or apartment rental unit. Cardboard boxes are also cheap, as are wooden ones, formerly known as coffins. Roughly 18 square feet of (non) living space.
What's not to like?
I always wondered where the former Soviet "economists" went. They're now in charge of gauging "sentiment".
The house market is boom Comrade, you will report as such, da?
So few permits to build so few camps housing so many dissidents
found a nice little foreclosure out on long island. only $2M, /s
Does it come with Lorena Bobbit and her knife?
(Penis joke)
Joey Buttafuoco's selling it.
Obviously at some point the inertia of cheap rates and low lending standards will collide with the irresistible force of declining wages and real inflationary pressures on young consumers. At that point where do the new home customers come from? Unless mortgage rates go negative, with new housing twice the price of existing, new houses will be like new cars, people will simply seek out used houses.
The young are so strapped with unpayable debt that their credit history is ruined before it gets started, thus the reason for new and lowered credit standards that have ever increasing interest rate charges. This next generation will be enslaved by the debt cabal so tightly that they cannot breath and the cabal kills thier victim. Young people be forewarned.
You are depressing them into "Eat, Drink and be merry for tomorrow we shall die."
As long as govt there will be a base line buyer. Here in California east (MD) predominate buyer is govt employee where you have a job for life with guaranteed salary bumps.
You import homebuyers from the third world.
There goes the market; up from here on the bad news is good news for the markets.
"Change you can believe in!"
Follow the yellow brick road?
The average Builder has a high school education AT MOST. They're usually a former carpenter with ZERO business sense. They have no fucking clue about the big picture. My family has been in the business for 50 years. The three largest builders in a our area are very wealthy and are now run by the uneducated/unsophisticated adult loser 40-50 year old children. Their business is cascading downward, but they still remain permanently rich. It takes a while to fuck up $100 million nest egg. Each of the children inherited $20-100 million. It is what it is. Our family stopped building in 2005, we saw the downturn coming.
The average Builder thinks he's brilliant by telling the bank that they need to loan him money to build houses. When they do, he thinks he won the lottery. I'm not kidding. They forget the part about having to build the house and sell at a profit. How many Builder's run out and buy a new truck or Bobcat? That's how most operate. When the house doesn't sell they ask the bank for more money to continue building more houses. They tell the banker "business is improving!", yet the inventory builds. Then someday in the near future those houses, many left unfinished after the final draw, return to the bank. That's when we'll be back in the game. You buy when no one wants to buy.