Real estate "remains a basket case"

from MarketWatch:



Housing starts expected to head lower again

By Rex Nutting, MarketWatch


WASHINGTON (MarketWatch) -- The economic news in the coming week will probably confirm just what you'd expect: higher prices, weaker home building and a Federal Reserve that's stuck in a tricky position.

The calendar of economic releases is fairly light. The most interesting event of the week could come on Friday when Fed Chairman Ben Bernanke speaks at the annual conference in Jackson Hole, Wyo., on financial stability.

The data should contain few surprises: July was probably another bad month for inflation and home building. The good news may be that builders didn't feel any worse about their business in August. See Economic Calendar.

Housing

"The sad reality is that no one expects good news on the housing market," wrote Meny Grauman, an economist for CIBC World Markets. Real estate "remains a basket case."

Economists surveyed by MarketWatch expect a big drop in housing starts in July to a seasonally adjusted annual rate of 960,000 from June's 1.07 million. The figures will be released Tuesday.
June's number was boosted by a technical quirk, the result of a new building code in New York City that encouraged developers in the city to rush to file their building permits ahead of the new rules.

July's figures should see both housing starts and building permits to come back to earth. .............(more)

The complete piece is at: http://www.marketwatch.com/news/story/housing-starts-expected-head-lower/story.aspx?guid=%7B55A8954E%2DBCC8%2D4A4F%2DB35F%2D9C297BFEBD6B%7D