The Obama Boom defies more economic rules again. Last month, housing starts dipped. Clearly demand is not a strong as the media would claim. Despite this drop, permits for new housing jumped to its highest level since 2008. Clearly something is out of whack here!
U.S. housing starts fell in February, but permits for future construction jumped to their highest level since October 2008, according to a government report on Tuesday that showed steady improvement in the housing market.
The Commerce Department said housing starts slipped 1.1 percent to a seasonally adjusted annual rate of 698,000 units. January’s starts were revised up to a 706,000-unit pace from a previously reported 699,000 unit rate.
Economists polled by Reuters had forecast housing starts little changed at a 700,000-unit rate. Compared to February last year, residential construction was up 34.7 percent, the biggest year-on-year rise since April 2010.
New building permits surged 5.1 percent to a 717,000-unit pace last month, far exceeding economists’ expectations for an advance to a 690,000-unit pace from January’s 682,000-unit rate.
This report is very contradictory. Actual sales are not increasing but expectations are. Clearly the home builders have bought into the Obama boom myth.
Tags: Housing Starts, Real Estate
