Building is now running below underlying demand of ~500K/month, but the sector is still plagued with a significant inventory overhang of +1 million units.
Of course, ongoing layoffs, stagnant incomes, and an ongoing recession does not bode well for Home Builders over the next 18 months. There may be a few short term trades here and there — but they are just trades.
As to starts, now THATS an ugly chart:
Hat tip RM, via Census
Originally published at The Big Picture blog and reproduced here with the author’s permission.