Highlights
Homebuilding in July slipped from June's gain but remained above recent lows. Also, the single-family component continued its uptrend. Housing starts in July decreased 1.0 percent, following a 6.5 percent boost the month before. The July pace of 0.581 million units annualized was down 37.7 percent year-on-year and was lower than the market expectation for 0.605 million units. The decline in July was led by the multifamily component which dropped 13.3 percent after plunging 26.1 percent the month before. However, the single-family component rose another 1.7 percent after gaining 17.8 percent in June. Single-family starts have risen five months in a row.

By region, July weakness in starts was led by a monthly 16.3 percent drop in the Northeast. Starts in the West and South also slipped, by 1.6 percent and 1.4 percent, respectively. The Midwest posted a 12.9 percent gain.

Housing permits also slipped on the multifamily component while the single-family components rose further. Overall permits edged down 1.8 percent, following a 10.0 percent boost in June. Permits in July were issued at a pace of 0.560 million units annualized and were down 39.4 percent on a year-ago basis.

Today's starts report is better than suggested by the headline number. Multifamily starts are notably more volatile that the single-family component. It is good news for many homebuilders that the single-family component has been on a moderate uptrend for five months.

Market Consensus Before Announcement
Housing starts in June increased 3.6 percent, following a huge 17.3 percent spike in May. The latest rise was led by the single-family component which advanced 14.4 percent after rising 5.9 percent the month before. However, the multifamily component gave back some of May's surge, falling 25.8 percent after a very strong 65.9 percent boost the month before. While it would be nice to see another gain in starts in June, we may just have to be content for the near term if there is no slippage given that unemployment is still high and consumer sentiment has declined. But there is modest reason for hope for gains ahead. Single-family home sales have been rising in recent months with existing up 3.6 percent in June and new up 11.0 percent for the same month. Supply on the markets has been improving but is still high, however.

2009 Release Schedule

Released On: 1/22 2/18 3/17 4/16 5/19 6/16 7/17 8/18 9/17 10/20 11/18 12/16 Released For: Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov