July Building Permits

Thursday, September 10, 2015

 

We experienced a modest lull in July permitting. For single family permits, all major markets, except Dade/ Broward, were off their highs of the previous month. Still, statewide, July was the second best since August of 2007. So... it’s all relative.

The crazy ride in the stock market may certainly affect some future activity in the short term. China is mishandling its own stock market, dumping billions into it to support prices that have been irrationally high. This is really rattling the world markets, too. The general consensus is that this will be a relatively short-term event. Let’s hope so!

The lumber charts, as always, are provided by Don Hayes of Sunbelt Forest Products. (BTW, today is Don’s birthday.) The prices are evidence of another phenomenon - dropping commodity prices. There is no inflation out there! The Fed’s two primary mandates are to bolster full employment and to regulate prices. They feel that some inflation is healthy. Here is a short article that explains why. http://www.investorguide.com/article/11755/is-inflation-really-good-for-the-economy-igu/

Home sales in Florida are trending downward in the normal seasonal manner. Spring months are peak period. The supply of homes for sale is 4.5 months, the lowest since I have been keeping records. Maybe this will help to force home prices up. That would make the Fed happy!

 
David Sumner 9/10/2015

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