DMACK

Rebound in Housing Starts Is Not a Sign of a Sustainable Turnaround

There's a problem with your math and it's in the geography. Yes there may be 13 months of new homes sitting on the market but the bulk of them are in 4 regions; California, Vegas, Phoenix and Florida. Unless we develop the technology to move already constructed houses from one state to another economically then we'll likely see starts up from the recent dismal numbers despite the backlog because some parts of the country have their new home inventories in line. I wouldn't be overly concerned about the jump in starts because a 20+% jump from the bottom still leaves you one step from the bottom.