Housing starts rose to a seasonally adjusted annual rate of 1.032 million, far more than the 954,000 estimated for March or the 939,000 that economists had been anticipating for April.
But, what most people won’t catch is this: multi-unit housing is included in this number. So, as investors support the market by building what is high in demand now, Apartments, the overall market numbers increase. Why is this you might ask? Well, even if you lose your house, you still need a place to sleep at night. It’s simple Supply and Demand.
Some say that this is a sign that we are nearing the bottom of this housing slump. I have to vehemently disagree. There are more rate adjustments coming up. The banks are still suffering and have not completely wrote off all of their losses. Also, there is still over supply of vacant homes. We have at least 6 to 12 months of correction to go through before the banks put more liquidity back into the market through loans and individuals start scooping up some of these empty houses. (I know I am betting on some sweet deals!)
But, hey, there is growth! You just have to look harder to find it…
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