December housing starts came in at a seasonally-adjusted annual rate of 1.08 million; the worst level since 9/16! Worse, starts for October and November were revised down. However, CY2018 starts were up 3.6% compared to CY2017. Moreover, rates have fallen considerably since 12/18, equities are up, the government has reopened, labor markets remain tight, inventory is rising, and appreciation is slowing. 2019 starts should be slightly better than 2018.