The CEO of one of America's largest home builders explains why he thinks we’re in the second or third inning of a housing recovery.
Homebuilder confidence may be the highest it’s been since before the housing bubble burst, but investors may have some reason not be as excited just yet.
The US Commerce Department released housing data on Friday and the news was mixed. Housing permits were 943,000, which was up 12.4% compared to the previous year. But, the breakdown of that number tells a more interesting story. Permits for multifamily homes were up 12.6% in July compared to June. That number was 330,000. But, single-family units dropped 1.9% over the same period to 613,000.
Meanwhile, actual housing starts were 896,000, up 5.9% compared to June and up 20.9% compared to last year. Like housing permits, the breakdown says two different types moved in opposite directions. Multifamily units were what drove the numbers up; single family home starts were at 591,000, down 2.2% compared toRead More »from Ara Hovnanian: Why the housing recovery is just starting