The U.S. Housing starts have fallen for the fifth time in the last six months and that does not bode well for the Santa Clarita Valley. The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for July 2006:
BUILDING PERMITS
Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,747,000. This is 6.5 percent (±1.2%) below the revised June rate of 1,869,000 and is 20.8 percent (±1.3%) below the July 2005 estimate of 2,206,000.
Single-family authorizations in July were at a rate of 1,318,000; this is 6.1 percent (±1.3%) below the June figure of 1,404,000. Authorizations of units in buildings with five units or more were at a rate of 342,000 in July.
HOUSING STARTS
Privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,795,000. This is 2.5 percent (±8.7%)* below the revised June estimate of 1,841,000 and is 13.3 percent (±7.7%) below the July 2005 rate of 2,070,000. Single-family housing starts in July were at a rate of 1,452,000; this is 2.3 percent (±8.9%)* below the June figure of 1,486,000. The July rate for units in buildings with five units or more was 264,000.
HOUSING COMPLETIONS
Privately-owned housing completions in July were at a seasonally adjusted annual rate of 1,927,000. This is 5.4 percent (±7.5%)* below the revised June estimate of 2,038,000, but is 2.3 percent (±9.8%)* above the July 2005 rate of 1,883,000. Single-family housing completions in July were at a rate of 1,665,000; this is 4.6 percent (±7.2%)* below the June figure of 1,745,000. The July rate for units in buildings with five units or more was 244,000.
Early, it was reported that builder confidence has sunk to a 15 year low, a level not seen since February of 1991. One only needs to look around the Santa Clarita Valley, on any given Saturday, to see all of the Real estate For Sale signs littering the green belts. David Seiders, chief economist for a home builders’ industry group said “Two factors are coloring builders’ perceptions of the market right now — rising sales cancellations and substantial growth in inventories of both new and existing homes, These factors are largely the result of an increasing number of potential buyers adopting a ‘wait and see’ attitude because of uncertainty about where the housing market is headed”. Also, speculators are fleeing the market, he said.