On August 17, the U.S. Census Bureau and the Department of Housing and Urban Development (HUD) published the July 2010 new residential construction report (PDF) and revealed that housing starts are down. This report has just added fuel to the fire that a double dip in the housing market is inevitable and also sparks new debate as to the likelihood of a true double dip recession.
In July 2010, single-family housing starts were 4.2% lower than the revised June figure. It gets worse with housing completions, in July 2010 private-owned housing completions were at a seasonally adjust rate of 587,000 units. This is 32.8% lower than the revised June estimate. If we look at the single-family residential market, the news is also bleak. The July 2010 figures were 27.5% below the revised June rate. In other words, people aren’t buying new houses like the economists predicted.
So let me try and look at the good side of this news: if this trend continues when I look at moving in a year or two, I might be able to get a great deal on a new build. Oh wait, I have to sell my existing house first. Can’t get a new deal when I’m saddled with an existing property, now can I? Ugh!
Photo: Great Valley Center/Flickr
