Housing 'Recovery' Stumbles As Starts, Permits Plunge In April

Tyler Durden's picture

After a big plunge in March (it's the weather, stupid), Housing Starts were expected to rebound in April... but did not! Starts dropped 2.6% in April, after March's 6.6% drop. Building Permits also tumbled 2.5% MoM - also multiple standard-deviations below expectations.

 

Single family permits dropped to 789K, the lowest since November (and multi-family is also at its lowest since Nov)

 

Starts drop for second month in a row to 1.172MM, lowest since November 2016...

 

Housing Starts are now lower than they were two years ago...

 

So this is probably transitory of course.

 

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Rich Stoehner's picture

So much bullish news and it's only Tuesday!!

Fizzy Head's picture

wha??? everything is awsome... Dow to new high's in 3...2... 

it's like shooting fish in a bucket!

order66's picture

The housing Recovery was complete a while back. Lower starts and permits are just going to cause prices to higher since there's ZERO inventory.

Valuator's picture

CNBC just said the negative instead of positive and March downward revision was good.

 

What's the problemo?

hangemhigh77's picture

At these prices most people are saying, "I don't need no stinking house".

spastic_colon's picture

low inventory (so we're told) and higher prices..........anyone else see their tax assessment go exponential?? home owners are getting f**cked!

Fizzy Head's picture

be sure and thank your politicians and the FED for this insanity. Americans should really get a backbone and stand up to this garbage...

http://www.ncpa.org/sub/dpd/index.php?Article_ID=25643

Justin Case's picture

Time for another rate hike and the FED to start off loading their balance sheet?

They need liquidity and lower rates to prevent the economy from doing a Kursk. There is no way out of this monetary experiment. They are just kicking the can down the road raising global instability with military aggression.

 

GodHelpAmerica's picture

I have an hft programmed with an algo to buy the NASDAQ on every piece of news released. It's phd level stuff... I'm up 50% in 6 months...

jamesmmu's picture

I was told by a real estate agent this is seller's market, there isnt enough avaiable units for sales on the market. 

Seasmoke's picture

This is a sellers market because nobody not connected can buy any of the foreclosures sitting all over the place.  Fraudulent. Criminal. Take your pick. 

jamesmmu's picture

You are right, nobody can access to foclosured housing inventory. This is fucking criminal.

I have been looking for a house to buy over internet, so few on the market, buyers are bidding up the prices like crazy. 

Some ppl are really need to purchase a house for their family now are getting rip off, I'm one of them. FUCK!

Let it Go's picture

Allan H. Meltzer, a distinguished monetary economist and historian and a longtime professor of economics at Carnegie-Mellon Institute, died last week at the age of 89. While he had a long and productive life I only wish Allen had lived long enough to have seen he was right on what has been happening since 2008. Meltzer questioned much of the "newfangled" economics that got us into this predicament in the first place. 

Allen Meltzer who was born in 1928 is viewed by many economist as America’s foremost expert in monetary policy. In recent years his mood has been troubled, he has been quoted as saying “We’re in the biggest mess we’ve been in since the 1930s,” and “We’ve never had a more problematic future.” Below is an article in tribute to Meltzer that presents some of the reasoning behind his concern over current economic policy.

http://brucewilds.blogspot.com/2017/05/it-will-all-end-badly-tribute-to-late.html

Haitian Snackout's picture

Personally, I don't know many gen. X, Y, people who like boomer houses anyway. They tend towards in town efficiency apts. And many will soon inherit boomer properties which will likely be put on the market. Builders, at the risk of pointing out the obvious, like to build. If they are pulling back.....

Russdiamon's picture

 

I remember what happened the last time with housing, but the timing is hard. This guy is great at timing the markets moves. I recommend checking out what he has to say. Check this out

Bam_Man's picture

Maybe higher interest rates will help.

LOL....