After a pitiful drop in May, building permits rebounded galantly in June (+7.4% MoM - the most since Nov 2015)...
Both Single- and Multi-family jumped...
and following three straight monthly declines, housing starts rose 8.3% MoM in June - the biggest jump since Dec 2016.
Both Single- and Multi-family jumped.
..
Starts bounced off unch YoY...
The biggest gains were seen in Northeast Starts - which rose 83.7%!!!
This rebound in building and prospective future building seems odd though, considering homebuilder confidence just cratered to 8-month lows...with homebuilders citing "lumber costs" as causing them to cut supply?
NAHB Chief Economist Robert Dietz said, “builders will need to manage some increasing supply-side costs to keep home prices competitive.”
“Our members are telling us they are growing increasingly concerned over rising material prices, particularly lumber,” said NAHB Chairman Granger MacDonald, a home builder and developer from Kerrville, Texas.
“This is hurting housing affordability even as consumer interest in the new-home market remains strong.”
Which is odd because Lumber prices are still below the April 25th levels when Trump invoked the tariff...
So what happens next?
