January 21, 2010
Economic update
Carrick: U.S. housing starts were lacklustre in 2009
U.S. housing starts in December 2009 were only 557,000 units, almost dead on with their 12-month average throughout last year of 552,000 units, CanaData chief economist Alex Carrick notes in his latest report.
“Most of the reason for the lacklustre performance of starts in the latest month is being blamed on early winter storms,” he says.
“Another factor was uncertainty about whether or not the $8,000 first time homebuyer tax credit would be extended. It was, through April of this year, and that will provide an incentive for starts and buyer participation through the first third of 2010.”
On the upside, Carrick notes there are record low mortgage rates available to credit-worthy applicants.
What’s more, building permits issued in December climbed 10.9% versus November.
“This augurs well for future starts,” Carrick says.
