Inside Lending Newsletter From Kristen Zorda, Recovery Will Continue
QUOTE OF THE WEEK… “Often you just have to rely on your intuition.” –Bill Gates, American business magnate, philanthropist, investor, computer programmer, and inventor
INFO THAT HITS US WHERE WE LIVE… We who work in the housing market understand this observation from one of the world’s most successful individuals. Our intuition tells us the recovery will continue to improve, yet the monthly data occasionally seems to contradict that idea. For example, May Housing Starts came in down 6.5%, to a 1.001 million unit annual rate. This was below consensus expectations, but Housing Starts are still up 9.4% compared to a year ago. Single-family starts are up 4.7% and multifamily starts up 18.2% in the past year.
To see the underlying trend, look at the 12-month moving average. In May, that hit its highest level since October 2008. Even with the May drop in starts, overall home building kept moving forward. The total number of homes under construction (started but not finished) was up 1.4% for May and is up 20.6% over a year ago. New Building Permits were down 6.4% in May to a 991,000 annual rate, but this drop was all due to the multifamily sector, which is volatile month-to-month. Single-family permits were up 3.7%.
BUSINESS TIP OF THE WEEK… Don’t let outside factors disturb your focus. Take note of what’s happening in the economy and your marketplace, but then put your head down and get back to work.
648 Plank Rd. Suite 203
Clifton Park, NY 12065
Orson B.Klender, Associate Broker
Keller Williams Realty Saratoga Springs
38 High Rock Ave, Saratoga Springs, NY 12866
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Cell: 1 (518) 588-2319 ~ Fax: 1(866) 588-6066