Thursday, February 16, 2006

Housing Starts Up: Bad News?

There was an increase in single-family housing starts in January which at first glance may appear to be good news, however, some analysts are saying this could put pressure on the market if the inventory is already accumulating and the demand is not there.

Current December new homes supply was at 4.9 months in December up from a year ago from 4.1. If sales slow, which is prediected, this could put more pressure on the economy. We’ll keep and eye on February reports and post those if the news is concerning.

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