Housing Starts Hold Steady

Single-family housing starts held steady in August even though builders are becoming more cautious about the outlook for sales over the next six months.The U.S. Census Bureau reported that single-family starts remained largely unchanged, at a seasonally adjusted annual rate of 1.71 million, from July to August. The August rate is 1.2% above the rate in August 2004. A National Association of Home Builders monthly survey shows that builder expectations of home sales dropped eight points, to 69, in September. NAHB chief economist David Seiders noted that the survey reveals builder concerns about the impact of Hurricane Katrina and higher interest rates, as well as buyer resistance to housing prices, which have been rising at double-digit rates. Even though builder confidence remains relatively high, the "results show that builders are cognizant of the anticipated signs of slowing housing activity in certain areas," Mr. Seiders said.