U.S.: Housing Activity Sinks to Record Lows

Daily Forex Fundamentals | Written by TD Bank Financial Group | Nov 19 08 15:55 GMT |

U.S. housing starts dropped to their lowest level on record in October. Building permits were also weak, falling also to a record low. Overall, the U.S. housing market continues to deteriorate. U.S. housing starts declined to 791K in October, following the upwardly revised 828K new homes constructed the month before (previously reported as 817K). The decline, however, was less than the drop to 780K expected by the markets, but nonetheless brought the amount of new residential construction to its lowest level on record. The 3-month average for new residential starts has now fallen from 877K to 824K. There were declines in the construction of both single-family (falling from 549K in September to 531K) and multi units (from 279K to 260K) constructed. Residential permits approvals were also weak, falling to 708K in October, which was far lower than the 774K expected by the markets. This was significantly below the 805K approved in September, and brings the number of approvals to a record low – going back to the 1960s. Most of the declines were in the single-family component, which dropped to 460K, from 538K in September, while multi-units approvals fell more modestly to 248K from 267K. Overall, the report was mixed, with starts slightly stronger, but permits approval much worse than expected. The correction in the U.S. housing market has continued at a fairly brisk pace in October. However, with construction and permits approvals reaching record lows, it may mean that the build-up of new home inventory could taper-off in the coming months. TD Bank Financial Group The information contained in this report has been prepared for the information of our customers by TD Bank Financial Group. The information has been drawn from sources believed to be reliable, but the accuracy or completeness of the information is not guaranteed, nor in providing it does TD Bank Financial Group assume any responsibility or liability.