Housing Market Declined In December

Press Release from the Census Bureau report on housing Permits, Starts and Completions. 

The upside; the low level of housing starts is a result of the flooded housing inventory which is currently being absorbed. Why is that good news? Well the housing market can’t recover without decreasing the inventory.

The downside; the housing market will recover slower than the overall economy, as result of a high unemployment rate and uncertain job security.

HOUSING STARTS

Privately-owned housing starts in December were at a seasonally adjusted annual rate of 557,000. This is 4.0 percent (±9.3%)* below the revised November estimate of 580,000, but is 0.2 percent (±11.5%)* above the December 2008 rate of 556,000. 

Single-family housing starts in December were at a rate of 456,000; this is 6.9 percent (±8.5%)* below the revised November figure of 490,000. The December rate for units in buildings with five units or more was 92,000.

HOUSING COMPLETIONS

Privately-owned housing completions in December were at a seasonally adjusted annual rate of 768,000. This is 11.2 percent (±13.6%)* below the revised November estimate of 865,000 and is 25.3 percent (±8.6%) below the December 2008 rate of 1,028,000.

Single-family housing completions in December were at a rate of 503,000; this is 11.1 percent (±10.2%) below the revised November rate of 566,000. The December rate for units in buildings with five units or more was 245,000.

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Tags: economic progress, Housing Market, unemployment

This entry was posted on January 20, 2010 at January 20, 2010 and is filed under Housing Market. You can follow any responses to this entry through the RSS 2.0 feed.