November Housing Starts Rebound

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November housing starts are expected to show a large rebound from the bad news in October. Housing starts dropped dramatically as the fate of the home buyer tax credit was in doubt. Another issue was that there was bad weather in October, preventing as many starts. But there are hopes that things will show improvement in November, reports FX Street:

Housing starts surprisingly plummeted from 592k to 529k in October. The deterioration illustrated the ongoing weakness in the housing sector, but it could also have been partly due to bad weather conditions. Thus we predict that housing starts will have recovered to 575k in November – still about 12% less than in the previous year. Building permits, which also dropped for the third time in four months, could have risen too, from 551k to about 570k.

The fact that the home buyer credit has been expanded to include those who are “trading up” when it comes to their homes is probably likely to help. The increase in consumer spending, as well as the improvement in the jobs market, are likely to play a role as well.