The U.S. Census Bureau and the HUD Department announced the new homes construction stats for August 2008 today. Total building permits were at a seasonally adjusted annual rate of 854,000 which was 8.9% below June 2008 and was down 36.4% from a year ago. 1 unit permits were at a seasonally adjusted annual rate of 554,000 which was down 8.9% from the previous month and down 36.4% from a year ago. 1 unit permits are at their lowest annual rate since August 1982. Total housing starts were at a seasonally adjusted annual rate of 895,000 which was down 6.2% from the previous month, and down 33.1% below August 2007. 1 unit starts were at 630,000 which is down 1.9% from July 2008 and down 34.9% from a year ago. Housing completions were at a seasonally adjusted annual rate of 961,000 (1 units were at 676,000) which was 9.8% below the previous month, and 35.8% below June 2007.
The amount of new homes being built is starting to be less than demand. This is a good thing as inventory is starting to be reduced. However, there is still a long way to go for demand to be in balance with supply.
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