Comments on: Contrary To Media Reports, Rising Housing Starts Are Not A Good Sign

By: Chad Brand

Chad Brand — Thu, 18 Jun 2009 13:42:57 +0000

Perhaps, but current inventories right now are north of 4 million units. It will take years to run through those even at 500K in starts. Not to mention the tens of thousands of bank-owned properties that are not up for sale even though they are empty.

By: Fred

Fred — Thu, 18 Jun 2009 13:18:07 +0000

Hey Chad, the rate of household creation is around 1M a year so while the increase may slow down the elimination of the over supply, the overall supply on the market should still be shrinking on an annual basis. Not suggesting there is a bottom in place but the number staying around 500K is not a bad thing for finding resolution to the supply/demand disequilibrium.

By: Corey McGuire

Corey McGuire — Wed, 17 Jun 2009 16:24:22 +0000

Exactly. Too many housing commentators focus on housing starts as the problem in housing. As if only we could just start building homes again then our economic problems would be solved. But thats not the problem. The problem is housing prices. They are too high for people to afford.