Today's housing starts number was met with the proper amount of cynicism on Wall Street. Sales are the most meaningful metric. Housing starts, particularly starts related to builder spec activity, are counter-productive to stability in pricing.
CNBC had a discussion about the housing numbers and "hope for housing". I think the assessment that the "usual suspects" are likely to continue dragging down the market is spot on. It gets tiring to repeat the "every market is different" mantra but it is true. Certain areas have not gone into recession, others are on their way back, and others have dark days ahead.
The health of the overall economy, the employment numbers, and sales of existing inventory are the "holy trinity" of housing recovery. Robert Shiller (of Case-Shiller index fame) and Nouriel Roubini (aka Dr. Doom) continue to be the "piss in the punchbowl" for all who are hoping for a return to the party days of 2005.
Here is what CNBC had to say earlier today...
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