WASHINGTON – The number of buildings built in December dropped to its lowest level in the last two years, which is a sign that developers expect that less new homes will be sold this year.
On Tuesday, housing starts fell by 11.2% in December compared to the previous month to a seasonally adjusted annual figure of 1.08 million. This is the slowest construction since September 2016.
Over the past 12 months, housing has fallen by 10.2%. Decline in December was due to single-family houses and multi-apartment buildings. Builders have returned, as rising prices have led to a drop in home sales, suggesting that accessibility problems have led to a reduction in the number of potential buyers and tenants.
"Artificially high prices have created accessibility constraints, which has led to a situation where builders can not deliver on a scale," said Brad Dilman, chief economist at Cortland developer. "The result is that today's housing market is not getting enough."
Last month, the Ministry of Commerce reported that sales of new homes in November were 7.7 percent lower than a year ago.
The housing market was initially cooled on average, 30-year mortgage rates rose to almost 5%. for housing is constantly growing Is it faster than wages and the inventory of buildings that are listed for $ 250,000 or less is rigid, indicating a sluggish market forward. In addition, the growth rate has slowed down, and wage growth has accelerated in recent months, which could also increase sales.
– said Daniel Hale, Chief Economist at Realtor.com.
The building permit, a measure of future activity, increased by only 0.3% in December. Among the houses that belong to one seven, the permission decreased by 2.2% in December and by 5.5% compared to last year.