WASHINGTON — August housing starts fell 14.4% to 956,000, well under market expectations, and the retreat was widespread. Single starts fell 2.4% to 643,000 and 5-plus units fell 31.5% to 304,000.
Permits also retraced 5.6% to 998,000, confirming housing will not take off ahead.
The few signs of strength in the report included Northeast single family starts jumping 16.7% and starts in the South grew 0.6%. The former is a rebound after two weak months, and the action in the South (the largest region by volume) put its numbers back near the year's highs.
Completions were 892,000, up nearly 17% on the year, better illustrating housing is in recovery than the fitful monthly numbers.
In a footnote, July starts were revised to 1.117 million from 1.093 million initially, and the new reading is a high since fall 2007. But it appears this somewhat faster pace that is more in line with demand cannot be sustained just yet.
The Q2 average for starts was 985,000, and the 1.04 million July-August average still suggests residential housing is advancing as Q3 comes to a close.
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