Welcome to Extreme Investor Network, where we provide valuable insights and analysis on all things related to the stock market, trading, and Wall Street. Today, we are diving into the housing market to discuss the latest trends and what they mean for investors.
Housing starts took a hit in July, with a sharp decline to a seasonally adjusted annual rate (SAAR) of 1.238 million. This represents a 6.8% drop from June’s revised estimate of 1.329 million and a significant 16.0% decrease from July 2023. Single-family housing starts were hit the hardest, falling 14.1% to a rate of 851,000, while units in buildings with five or more units dropped to 363,000.
On the bright side, housing completions remained strong in July, reaching a SAAR of 1.529 million. While this is a 9.8% decrease from June, it marks a 13.8% increase compared to July 2023. Single-family completions saw a slight increase of 0.5% to 1.054 million, while completions for units in buildings with five or more units reached 473,000.
Looking ahead, the decline in building permits and housing starts paints a bearish outlook for the U.S. residential construction market. Factors such as rising interest rates and economic uncertainty are likely contributing to the pullback in new construction activity. Investors should be prepared for potential weakness in housing-related stocks and industries linked to residential construction.
Stay tuned to Extreme Investor Network for more in-depth analysis and unique insights that will help you navigate the ever-changing landscape of the stock market and make informed investment decisions.