Housing starts, a leading indicator for housing construction, last month were reported to have dropped a frightening 14% in October alone. Today’s data release shows starts to have rebounded a bit with a nice 6.7% gain in November. However, that still leaves this number 25.5% below November 2005.
The bad news is that building permits, a leading indicator for housing starts, continued their fall, down 3.0% compared with October 2006 and down 31.3% from November 2005.
Elsewhere, my favorite blogger Dave Altig finds some holiday cheer in the National Association of Home Builders and Wells Fargo index, which is based on a survey of how home builders perceive present and expected future sales. This NAHB index appears to have bottomed out.