The Housing Recovery in Perspective

By Marc Chandler, Global Head of Currency Strategy, Brown Brothers Harriman

This Great Graphic from Calculated Risk puts the US housing market recovery in the context of past recoveries. Two points are clear. Single family house starts is recovering and it is historically weak. The July data is slated for release on Thursday, August 16.

A small decline is expected after the 6.9% increase in June. June starts of 760k was the strongest since October 2008. Permits peaked in May at 784k, the highest since September 2008. A small increase is anticipated in July, but not enough to offset June’s 3.7% decline.

 

Marc Chandler

Marc Chandler

Marc Chandler has been covering the global capital markets in one fashion or another for nearly 25 years, working at economic consulting firms and global investment banks. Chandler attended North Central College for undergraduate. He holds masters degrees from Northern Illinois University and University of Pittsburgh in American History and International Political Economy. Currently Chandler teaches at New York University Center for Global Affairss, where he is an associate professor.

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4 Comments

  1. LVG says:
    08/14/2012 at 1:07 AM

    “Housing recovery”? What is this guy talking about? I know Calculated Risk has made a big bottom call and that they’re now trying to convince the world that they’re right, but prices haven’t shown any sign of a sustainable rebound. How can anyone call this a “rebound”?

    • Anonymous says:
      08/14/2012 at 8:38 AM

      agreed.

    • Different Chris Dunce Cap Aficionado says:
      08/14/2012 at 9:45 AM

      Eh, I guess it all depends on whether it sustains or not. I think this type of trajectory could be sustatined if the fiscal cliff is avoided.

      If not… well… ouch.

    • Alan S says:
      08/14/2012 at 1:43 PM

      There are two things that need to recover in housing. One is prices. the other is housing starts which is measured here and perhaps the more importamt for the econom as a whole for its effect on employemnt and demand.