Housing Status

I have always expressed that as the housing market gains strength and consistency the economy will follow suit. The linkage between jobs and housing stabilization is clear.

Those areas which have solid population growth and job creation will experience housing price increases. The first indicator would be new housing starts.

Most states are experiencing a positive change from the year over year comparison
from Oct ’09 and Oct ’10.

There are areas which continue to experience a slow down in new housing starts:

Kansas -26%
Nebraska -3%
South Dakota -10%
DC -52%
South Carolina -6%
West Virginia -12%
Alabama -11%
Mississippi -33%
Louisiana -11%
Oklahoma -6%
Arizona -8%
Idaho -15%
New Mexico -2%
Nevada -5%
Utah -16%
Oregon -6%

States with significant gains year over year percent change (20% to 30%)

Massachusetts +27%
New Hampshire +22%
Vermont +29%
Michigan +29%
Maryland +21%
Tennessee +21%
Colorado +23%
Montana +24%
California +21%
Washington +20%

It is not difficult to show positive trends when housing starts has been historically low for the past several years. The fact that California has had a positive increase in housing starts signals a significant trend especially when LA, Riverside, San Diego and San Fran represent 60% of the total new housing starts.

However, is there going to be a double dip recession in the housing industry?