There is a notable intent to talk down the economy amid almost all financial news providers. However, despite their negative tone the economic reality continues to surpass their Eeyore disposition.
October’s U.S. housing starts jumped +13.7% to 1.29 million units and now begins to catch up with the underlying economic data.
You’ll note CTH discussed how housing would be regionally specific as the larger Main Street MAGAnomic policies were implemented.
Capital expenditures by home builders and home purchasers are the biggest financial decisions for most American workers.
Due to the deliberate factors involved, home purchasing is the largest railroad car in the economic train; it is also positioned in the rear of the economic sequencing. However, when home building takes off the entire economic train gains momentum.
(Via Reuters) […] The sharp rebound in home construction reported by the Commerce Department on Friday was also driven by robust gains in the Northeast and Midwest regions.
The broad recovery could ease concerns about the housing market, which has been a drag on economic growth since the second quarter. The report added to labor market, manufacturing and retail sales data that have pointed to strong economic momentum as the year winds down.
“Homebuilders are building and that signals greater confidence in the economy ahead,” said Chris Rupkey, chief economist at MUFG in New York. “Housing construction has been the missing link in the puzzle over why investment spending has lagged in this recovery.”
Housing starts surged 13.7 percent to a seasonally adjusted annual rate of 1.29 million units. That was the highest level since October 2016 and also the second-best reading in 10 years. September’s sales pace was revised up to 1.135 million units from the previously reported 1.127 million units.
[…] Housing starts in the South soared 17.2 percent in October to 621,000 units, with single-family construction vaulting 16.6 percent to its highest level since 2007. There were also increases in homebuilding in the Midwest and Northeast.
“The pace of building came back stronger than before the storms hit, which suggests the increase from recovery may have already started in fourth quarter,” said Mark Vitner, a senior economist at Wells Fargo Securities in Charlotte, North Carolina.
October’s increase in starts ended three straight months of declines, leading economists to expect that housing would contribute to gross domestic product in the fourth quarter. (read more)
Remember what we said about where the single-family home increases would surface. Again, it’s all related to the larger focus within economic policy:
Home values and local economic factors will be driven by “regional” economies. Period.
The exact same areas of the country which have gone through two decades of economic contraction will now see economic expansion and revitalization. The Fed policy which influences Wall Street was not, and is not, domestic centric. The fed policy is corporate driven, globalist in influence.
Industrial areas with affordable housing and infrastructure, which have suffered in the past 20+ years, will see home values increasing as the local economy expands.
National policy (Trump Policy) which benefits Main Street also benefits local economics which are founded in manufacturing, production, and ancillary services. In essence, the Middle-Class.
Housing starts in the South soared 17.2 percent in October to 621,000 units, with single-family construction vaulting 16.6 percent to its highest level since 2007.
[…] Single-family home building, which accounts for the largest share of the housing market, increased 5.3 percent to a rate of 877,000 units in October, the highest level in eight months.
Single-family starts fell 22.4 percent in the Northeast and slipped 7.7 percent in the West. They rose 7.8 percent in the Midwest.
[…] October’s increase in starts ended three straight months of declines, leading economists to expect that housing would contribute to gross domestic product in the fourth quarter. (link)