Tuesday, June 20, 2006

Housing Starts Exceed Estimates

- Housing Starts for May rose to 1957K versus estimates of 1867K and 1863K in April.
- Building Permits for May fell to 1932K versus estimates of 1932K and 1973K in April.
BOTTOM LINE: Home construction rebounded in May from a 13-month low as builders worked on backlogs and used incentives to win new business in a slowing market, Bloomberg reported. Starts rose 16% in the West, 1.7% in the Northeast and 8.5% in the South. Starts fell 16% in the Midwest. I expect housing starts to decelerate further over the intermediate-term as inventories remain high.

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