Strategy in TECH...
According to the latest data from national realtor Redfin, sales of luxury homes in the U.S. have declined a record -44.6% for the three-month period ending January 3, 2023, on a year-over-year (YoY) basis. That result outpaced the decline in sales of non-luxury homes of -37.5%.
Last month, Strata-gee reported on a shocking 30+% drop in residential housing construction, with starts dropping an eye-popping 30.2% in April. That was ultimately revised to a decline of “only” 26.4%…still a massive one month decline. Now in May, we see starts attempting to rebound from those unprecedented drops.
The U.S. Census Bureau and the U.S. Department Housing and Urban Development announced this week that sales of newly built residences fell in February 2020. Housing starts also fell in February. This housing market downturn is likely a precursor to much more dramatic declines when figures for March 2020 are reported – a time period when the coronavirus (COVID-19) pandemic began to really take hold across America, forcing State and City governments across the U.S. to order residents of all non-essential businesses to stay home.
Like at the end of the Christmas movie, Miracle on 34th Street, it appears that Santa brought new homes for all the good little girls and boys at the end of last year. New government data on residential housing construction starts for December 2019 startled economists, jumping an unexpected 16.9% for the highest rate of construction in 13-years.
In new data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, the readings appear split with housing starts showing increases while new home sales declined. Housing, a prime component of the overall U.S. GDP has been in a bit of a swell over the last couple of months, driven largely by low interest rates stimulating demand for homes.
As the economy continues to show more signs of a slowdown, we can’t help but notice increasing volatility in the month-to-month readings of various statistics. The latest government data on housing construction starts is a great example of this. After a big jump in August, starts dropped in September by 9.4% – a larger than normal amount – from the revised rate in August.
The latest data from the Census Bureau shows that sales of new single-family housing in April dropped to a rate of 673,000 on a seasonally adjusted annual basis. This level is down a substantial 6.9% from the adjusted rate for March of 723,000 houses sold.
As regular Strata-gee readers know, I follow basic economic data for our readers. Not all economic data, just that data I feel are germane to the custom integration and consumer electronics industries. Normally, that is a fairly sane and sedate task – but lately, it has gotten a bit crazy, with wild up/down swings the likes of which I haven’t seen since the last great recession. Take housing starts, for example…
New data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development shows that sales of new single-family homes in December were a seasonally adjusted annual rate of 621,000 or 3.7% above the revised rate in November of 599,000. However, it remained 2.4% below the year-ago rate of sales in December 2017 of 636,000.
The U.S. Commerce Department released new data this week on housing starts for December 2018. Overall residential construction dropped to 1.08 million units on a seasonally adjusted annual rate or 11.2% lower than the November rate of 1.2 million units. This is the lowest rate of residential construction since September 2016.
