US homebuilding near two-year low, permits extension declined

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US homebuilding near two-year low, permits extension declined

On Friday, the 19th of April 2019, the US Commerce Department had revealed a US homebuilding data which closely reflected a painting of worldwide tottering of real estates and house building industries despite declining mortgage rates, as the data displayed a drop of US homebuilding to a nearly two-year low in March, pointing towards a continued weakness in the single-family unit segment and a struggling housing market.

However, a decline in homebuilding report for the second straight months might have partly been catalyzed by a massive flooding over the Midwest States, a rising cost of homebuilding equipment could not be ignored, as a similar incident was recently observed over Germany, where housebuilding costs rose more than 7.5 percent and there had been a decline of apartment building industries as well.

Besides, the scenario had also closely resembled to a dropping of sales over Real Estate industries in UAE, while real estate kingpins likes of Emaar had been vying to vent a profit. Although, last week reported a recent upstream of upbeat data including trade, construction spending and retail sales, which could prompt the US Central Bank not to slash interest rate over the later part of the year, the homebuilding remained at a record low, levels last seen by early 2015.

Expressing looming uncertainties over the US home construction industry, chief economist at MUFG in New York, Chris Rupkey said, “Waiting for construction activity to pick up after a sharp drop in mortgage rates is like waiting for Godot. It is hard to know what is ailing the home construction industry”.