Positive News for Housing Industry as New Housing Starts Decline

Both U.S. housing starts and permits dropped for the second consecutive month according to the U.S. Census Bureau. Single family starts dropped 6.8% and building permits dropped 4.0%.

So why is this good news?

This is good news because it does not add to our inventories of homes available for sale.  We have had several months of very strong sales in both existing residences and newly constructed homes which have helped to lower our inventory levels each month.  The newly extended and expanded tax credit and ultra low mortgage rates could ensure continued strength in sales.  While we are still in a buyer’s market, many are starting to realize that it will not continue forever.  As inventory levels continue to move towards an equilibrium, it will gradually shift to a more balanced market for both buyers and sellers.

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Andrew Smith

Sente Mortgage

901 S. Mopac, Building IV, Suite 125

Austin, TX 78746

o 512.637.9900

c 512.751.6263

f  512.637.9901

www.SenteMortgage.com

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