Courtesy of ZeroHedge
With homebuilder sentiment collapsing, it should be no surprise that analysts expected housing starts and permits to tumble in October, and they were right with starts dropping 4.2% MoM and permits down 2.4% MoM…
Source: Bloomberg
That pushed the total number (SAAR) of building permits (forward looking) to its lowest since Aug 2020…
Source: Bloomberg
Breaking down the numbers, we see single-family housing starts plunge 6.1% MoM and single-family permits tumbled for the 8th straight month. Multi-family starts and permits also both fell (-0.5% MoM and-1.9% MoM respectively)…
Source: Bloomberg
Single-Family starts (SAAR) are at the lowest since May 2020…
Finally, given the further plunge in homebuilder future sales expectations, it appears housing starts have a long way to fall before any balance is found…
Source: Bloomberg
And that means dramatic pain ahead (and even, perversely, higher home prices as supply is constrained).
