These days the news is not all doom and gloom in the residential real estate markets. Housing starts showed improvement in the most recent report with new home construction inching up.
And folks, inching up is the best news we can here. We don’t need a just add water recovery in the housing markets. While it would be nice for the checkbooks and our own mortgage payments, adding more housing inventory at a rapid pace would just blow up the market again.
I am in favor of a long and balanced recovery.
We’re in a slow and steady progress phase of the housing recovery,” said Aaron Smith, a senior economist at Moody’s Economy.com in West Chester, Pennsylvania, who forecast new-home construction would increase to a 590,000 pace. “The trend will be upward, but it’s going to be a bumpy path higher.”
Estimates for January starts in the Bloomberg survey of 77 economists ranged from 530,000 to 700,000. The government revised December’s reading to a 575,000 pace from the 557,000 previously estimated.
A separate report today from the Federal Reserve showed industrial production climbed 0.9 percent in January, more than anticipated, following a 0.7 percent increase the prior month. via Business Week
