Yesterday the Housing Starts Report for November came in at a strong 1.365 million annual rate; but more importantly building permits, which is a gauge of future strength or weakness, came in at 1.482 million. It appears the housing market remains strong and with a shortage of homes to buy 2020 should see a good year for home construction. That does not mean prices will keep rising but they are not likely to fall either.
To support this outlook, builder’s sentiment rose to 76 from 71 the highest number we have seen since June of 1999. The builders are confident.
Housing is one of the most important assets in our economy as most of the middle class uses this to determine their feeling of wealth. As long as the consumer feels confident they will keep spending and that drives our economy.