Single-Family Home Starts Seen Catching Up to Surging U.S. Sales

May 07, 2015 — David Wilson – Bloomberg
New single-family houses are selling fast enough in the U.S. that homebuilders will have to pick up the pace of starting them, according to Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC. The attached chart compares annual growth rates in sales and starts, as compiled by the Commerce Department, during the past 25 years. The top panel shows the rates, while the bottom panel tracks the percentage-point gap between then. Last month’s sales of one-family homes totaled 510,000 at an annual rate, according on the average estimate of economists in a Bloomberg survey. The projection amounts to a 26.6 percent increase from a year ago. Builders began working on 2.7 percent fewer homes in March, according to data released yesterday. The 29.3-point differential would be the widest since July 1995. Read the full story...
Reprinted courtesy of David Wilson, Bloomberg
Mr. Wilson may be contacted at dwilson@bloomberg.net