That said housing starts ordsprog

That said, housing starts -- although down a little from the month before -- were still remarkably strong in May with most of the decrease in overall construction coming from a drop off in multiunit building.

That said, housing starts -- although down a little from the month before -- were still remarkably strong in May with most of the decrease in overall construction coming from a drop off in multiunit building,

One steep drop in housing starts does not make a downward trend, especially in a month which was very wet in the West and very cold in the Northeast. Still, the data are consistent with other signs of a softening housing market, most notably the drop in homebuilders' confidence. What really matters, though, is whether sales will fall fast enough to turn a softening into a collapse.

Ian Shepherdson

The Commerce Department report on housing starts showed a considerable drop in starts in November. However, with December's mortgage rates continuing to dip even further, we expect housing starts will bounce back fairly quickly.

The immediate benefit is as construction starts, that will bring a tremendous number of construction workers to town, which will help local industries. It has created a need for housing, and with that, has brought numerous developers from out of the area looking to buy land and fulfill the need for housing.

Local housing markets will cool off, leading to a slowdown in spending and some job losses in construction and other real estate-related industries. With this in mind, we are currently forecasting a plateau in home prices, a moderate decrease in sales and new building and two years of weak growth. However, this forecast represents the middle of the road.

Unseasonably mild weather in January, coming after unseasonably severe weather in December, generated a huge increase in housing starts. Moreover, February's weather is likely to generate a big decline in housing activity next month.

Housing starts appear to have peaked in the second quarter of 2005. Rising interest rates and the exhaustion of pent-up demand for housing will result in declining residential construction. Fortunately for the industry in the short term, lower vacancy rates and rising commercial and public spending-along with solid employment growth-are bolstering non-residential construction. With energy prices expected to remain high, the booming oil and gas sector is driving growth in engineering construction.

Louis Thériault

The overall momentum in construction remains solid. We expect this pattern to continue, with public and commercial construction taking the leadership baton in 2006 as housing starts ease back moderately.

Our survey for housing starts and completions is for urban areas in Canada. Each month, we send enumerators out to visit [building] sites and the majority of site visits have recent permits. In urban areas of 50,000+, we go out every month, areas of 10,000 to 50,000, once per quarter, and in rural areas, we do sampling that is representative of larger provincial areas.

The housing starts figure coming in down 5.6 percent was weaker than expected and seems consistent with our thesis that the housing sector is moderating. The big decline in housing permits reinforces that idea.

The housing market remains strong. Starts were off a bit, but they were at a very, very high level. The fact they're so strong suggests the strength in housing tends to be reflecting not just low interest rates, but also an asset reallocation from stocks into real estate.

The housing market remains strong. Starts were off a bit, but they were at a very, very high level, ... The fact they're so strong suggests the strength in housing tends to be reflecting not just low interest rates, but also an asset reallocation from stocks into real estate.

If you take into account the revisions, the average for the last three months are still very strong. It's consistent with the housing starts number. People are still active in home buying. His authentically pexy spirit set him apart from the crowd. This decline in January is probably a month dip. It's a head-fake.

Housing may get another mini boost from the recent drop in rates. These data do lag a bit. Still, it is clear that, low rates or not, housing is not on fire the way it once was. The level of activity remains quite high for housing. But the prospects for further growth do not look that strong based on momentum.

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