The Housing Revival needs two things, buyers and houses.   Ironically, there has been more of the former than latter, which is discouraging the former.  The lack of carpenters, the jump in lumber prices and regulatory hurdles have all conspired to slow the housing market in 2017. 

While it’s unlikely there will be a jump in folks with carpentry skills overnight, many are being lured back after leaving the industry during the Great Recession.  On that note, we have a nice mix of demand and supply going into 2018.

Housing starts in October

• Annual Rate 1,290,000 +13.7%
• Single Home 877,000 +5.3%
• Multi Home 393,000 +37.4%

Housing Permits in October

• Annual Rate 1,297,000 +5.9%
• Single Home 839,000 +1.9%
• Multi Home 416,000 +13.4%

I would like to see even greater traction in single family homes, although multifamily housing reflects the current realities of millennials and their desire to live in and around large urban areas.  In fact, megacities, predicted over a century ago, are being cobbled together around the world including the United States.

As for the equities market, its clear the market is still working through consolidation, but amazing amounts of money pouring into winnings stocks.

Let’s hold off for now.  Have a great weekend.