By Dr Denver H. Bubble
Housing starts resumed their fall in September nationwide, dropping by 5.3% despite a downward revision to August's increase. Permits nationwide also fell, dropping for the fifth month of the last six. Permits' drop was driven by an 18.9% plunge in the Midwest. The Northeast was down 9.8%. The South had a minor uptick at 0.6%, and Denver's home region the West was up 11.1%, the only bright spot of the report for housing starts.
The Northeast dominated housing starts with a huge 29% spike while the South and Midwest tumbled. The Midwest was down 14.0% and the South was down 13.7%. Denver's home region, the West was up 6.6%.
The increase in both housing starts and permits are a good sign for the housing market for Denver. Increases in these metrics are usually leading indicators of new supply of houses coming online in the market, which should continue to put downward pressure on the high housing prices by increasing the housing inventory available for sale in Denver.
Image source: Zerohedge.com