A potential silver lining to US housing starts tumble

By John Greene
Forests2Market Blog
August 18, 2022
Category: Finance & Economics
Region: United States

After a disappointing May and June, US housing starts continued to lose momentum in July as the housing market cools amid surging mortgage rates and crippling inflation. …The slower pace of starts in 2Q helps explain why residential investment subtracted from GDP, and why lumber prices have slumped from their highs earlier this year. …Despite the dour mood in the market, Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), found a silver lining in the data: “Homebuilders are naturally very cautious about rising unsold inventory during the construction phase. But those completed homes are finding buyers within three months, which is relatively swift for the new homes market. Improving conditions within the supply chain for the delivery of items such as lumber and appliances will lessen overall uncertainty. Moreover, demographics still suggest a sizable housing shortage.

Read More