Key Indicators In Housing Slowdown Analysis

Key Indicators In Housing Slowdown Analysis

With the housing market clearly sagging, economists and investors are watching a variety of gauges to get a handle on the severity of the contraction.  

Last week, the Commerce Department reported that construction starts on new homes dropped 6% in August from July, to an annualized 1.665 million. That "housing starts" figure was about 5% lower than forecast and 20% lower than the year earlier 2.075 million. The month-over-month decline was the sixth one this year and put housing starts at the lowest level in more than three years.  

The government estimates housing starts by surveying a sample of people who have applied for building permits. In places where permits aren't required, the process includes driving around looking for new-home construction.

Read more about other gauges tracking home sales…