US housing starts stabilise
on April 18, 2009

Housing apr09.jpgAs the blog had hoped, US housing starts have stabilised in recent weeks. As the chart from Wall Street Journal shows, single-family home starts in March remained at c360,000 for the 3rd month running.
Equally, the National Association of Home Builders’ index improved slightly from 9 in March to 14 in April.
But starts are still 80% off their March 2006 peak, and just 50% of the March 2008 level. Meanwhile, foreclosures continue to rise, whilst average prices are down 29% since their 2006 peak.
It would therefore be very optimistic to believe that the current period of stability might be any more than the start of a bottoming process. The chances of it leading to a full-strength V-shaped recovery by H2 look remote.

Share This Post
Comments
  • Chemicals & The Economy
    May 3, 2009

    Chrysler’s bankruptcy marks dawn of new reality

    The International eChem team are very experienced in turnarounds and restructurings. We have undertaken these both as employees within our former companies, and then as advisers. This has taught us to be alert for the ‘tipping point’, when a situation…

Leave A Reply