By Dr Denver H. Bubble
May’s starts and permits data had a very mixed result. Housing starts jumped 5.0% month over month in May beating expectations of 1.9%. April starts data were revised to a 3.1% drop. Building permits however dropped 4.6% much worse than the expectations of a 0.9% drop.
The spike in starts was driven by an increase of 11.3% in multifamily. Single-family starts were up 3.9%. The permit decline was driven by multifamily which dropped 8.5%. Single-family permits dropped only 2.2%.
Median homes prices rose across the country by 4.9% year over year to a new record of $264,800 as inventory fell by 6.1%. It is interesting to compare with our metro Denver, which had an increase of 25% in inventory. We continue to track to see if we are de-coupling from the national trend in the real estate market.
Image source: Zerohedge.com