HOUSING HIBERNATION

Single-family housing starts keep falling, and July’s 808,000 annualized are at their second-lowest level since 4/2020! July new-home sales of 607,000 annualized are down 6.3% Y-o-Y and haven’t been consistently this low since 2017. Moreover, median prices are at a five-year low. As a percentage of GDP, residential fixed investment – home construction, renovations/alterations/repairs, manufactured/modular homes, and broker commissions – continues falling and is at a level associated with recessions.