Privately-owned housing starts in August were at a seasonally adjusted annual rate of 895,000, 6.2 percent below the revised July estimate of 954,000. It was the slowest pace since January 1991. Single family starts in August were at a rate of 630,000, a 1.9 percent decline from July, according to the latest data from the The U.S. Census Bureau and the Department of Housing and Urban Development.
"Our latest builder surveys have indicated a substantial improvement in builders' sales expectations for the next six months, in part because of the newly enacted tax credit," acknowledged NAHB Chief Economist David Seiders. "Meanwhile, the government takeover of Fannie Mae and Freddie Mac and the ongoing turmoil on Wall Street actually have produced downward pressures on key home mortgage rates, which should also help get more buyers to the table. But until sales have clearly turned the corner, it's very important that builders continue the process of pulling in the reins on new production, which is exactly what they are doing and is right in line with our forecast. NAHB continues to project a stabilization of new-home sales in the final quarter of 2008 which should, in turn, allow production to begin a slow and steady recovery by the second quarter of 2009."
Two out of four regions posted double-digit declines in total housing starts for August, including the Northeast (down 14.5 percent) and the Midwest (down 13.6 percent). The South posted a 7.4 percent decline in housing starts in August, while the West registered a 10.8 percent gain following an equivalent decline in July.
BUILDING PERMITS Privately-owned housing units authorized by building permits in August were at a seasonally adjusted annual rate of 854,000, 8.9 percent below the revised July rate of 937,000. Single-family authorizations in August were at a rate of 554,000, 5.1 percent below the July figure of 584,000.
On a regional basis, total permits fell 21 percent in the Northeast, 9.9 percent in the South and 7.1 percent in the West. Permit issuance edged up by 0.7 percent in the Midwest.
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