Housing starts down, but permits provide hope
Posted By Prieur du Plessis On January 20, 2011 @ 9:40 am In Economy,Housing | No Comments
The latest round of housing data shows residential construction has fallen again, with December housing starts dropping 4.3% below November to an annualized rate of 529,000 units. Although this decline is somewhat deeper than expected, permit extensions increased strongly by 16.7% month on month in December to an annualized rate of 635,000.
Asha Bangalore, economist of Northern Trust [1], commented as follows: “Is the sharp increase in housing permits extended in December the beginning of a new trend? It is premature to draw a firm conclusion. However, the December Architectural Billings Index for residential housing sends a bullish signal. The Index rose by 10.7% during December. There is a strong positive correlation between this Index (advanced five months) and housing starts, implying that housing starts could move up in the early months of 2011.”
[2]
Source: Northern Trust – Daily Global Commentary [1], January 19, 2011.
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URLs in this post:
[1] Northern Trust: http://www.northerntrust.com/
[2] Image: http://www.investmentpostcards.com/wp-content/uploads/2011/01/NT20.jpg
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[4] (What's this?): http://www.wikinvest.com/blogger/wikinvest_wire
[5] We’re Officially in a Stock Picker’s Market: http://www.wallstreetdaily.com/2012/02/10/a-stock-pickers-market
[6] Farmland Blows Up in 2011: http://www.wealthdaily.com/articles/farmland-blows-up-in-2011/3337
[7] Shock: Housing Worse than Feared: http://www.wealthdaily.com/articles/shock-housing-worse-than-feared/3338
[8] Housing starts: http://www.wikinvest.com/wiki/Housing_starts
[9] Northern Trust: http://www.wikinvest.com/stock/Northern_Trust_(NTRS)
[10] Lingui Development: http://www.wikinvest.com/stock/Lingui_Development_(KUL:2011)
[11] Wikinvest: http://www.wikinvest.com
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