February Housing Starts Decline Below 1,000,000 For First Time Since August 2014
Chicago, IL (PRWEB) March 18, 2015 -- Lenders like People Home Equity were disappointed to see today's February housing starts announcement.
According to the U.S. Census Bureau, "Privately-owned housing starts in February were at a seasonally adjusted annual rate of 897,000. This is 17.0 percent (±9.5%) below the revised January estimate of 1,081,000." Peoples Home Equity found this announcement disappointing given that housing starts remained above an annual pace of 1,000,000 from September to January. However, given how American real estate market fluctuates from winter to summer to may be understandable that housing starts would post at least one month of lackluster numbers before the Spring. Still for analysts and lenders alike the report remained disappointing also because, as TradingEconomics.com states "Housing Starts in the United States averaged 1448.03 Thousand from 1959 until 2015". The current level 897,000 is 38% below the average.
Single-family housing starts in February were at a rate of 593,000; this is 14.9 percent (±10.0%) below the revised January figure of 697,000.
Fortunately, not all data reported was bad news, the U.S. Census Bureau also said "Privately-owned housing units authorized by building permits in February were at a seasonally adjusted annual rate of 1,092,000. This is 3.0 percent (±1.7%) above the revised January rate of 1,060,000 and is 7.7 percent (±2.0%) above the February 2014 estimate of 1,014,000."
Peoples Home Equity sees the housing market as continuing to improve and today’s data is reflective of this view. National real estate inventories are below demand levels, but this may soon change. Peoples Home Equity is confident that young first-time home buyers are eager to stop paying for rent, get approved for a home loan, and purchase a property. Currently, the total cost of paying a mortgage + association fees + properties taxes is often less expensive than paying for rent!
If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026
Giorgio U Ferrero, Peoples Home Equity, http://www.peopleshomeequity.com/index.php/main, +1 8473386062, [email protected]
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