U.S. Building Permits U.S Building Permits
Rep: 1.495m ✅Higher Than Expected ✅
Exp: 1.480m
Prev: 1.467m
This chart is very similar to the Housing Starts chart I just shared in that it is in a long term uptrend since March 2009 (slightly before above charts April 2009). However there are a few differences. The drop in permits now versus 1998-2000 period is much much sharper.
Like the U.S Housing Starts chart, lets watch the diagonal support and see IF we get a change of trend.
What are U.S. Building Permits
U.S. building permits are official approvals granted by local government authorities that authorize the construction, alteration, or demolition of structures within a specified jurisdiction.
Worth noting that I shared the below chart earlier this week that seems to illustrate a sharp drop in New Home Sales which coincides with the sharp drop in permits above. Interestingly Existing homes sales appear to be increasing with this drop new home sales.
Potentially with more existing homes (old supply) coming onto the market this may present a headwind for new permits and new homes going forward.
With existing supply coming onto the market, you would think that this might help lower house prices, however demand and lower interest rates could offset this. Fascinating to watch this all play out
Happy Thursday
PUKA
