Permits for single-family homes fell 1.8 percent to their lowest level since July 1997, but permits for multi-family units jumped 16.5 percent.A report like this is very hard to read for any indication of where the housing market goes from here. While permits for single family homes fell, multi-family homes rose. What I see is that the average family is being priced out of the market, hence the dip in single family homes, yet the wealthy who would purchase multi-family homes as investments are doing extremely well hence the jump in multi-family permits.
Tuesday's data comes a day after a report indicating that homebuilder confidence is at its lowest level in more than 16 years.
The National Association of Homebuilders/Wells Fargo Housing Market Index dropped two points to 28 in June. The index of builder sentiment had not dipped that low since it reached 27 in 1991.
This report in my opinion just solidifies my view that the middle and working classes of America are not faring well in the Bush economy, which is always touted as a great success. This report and the negative savings rate would indicate the great success is only for the select few.