Joe Moshé Says Weak Housing Starts May Be Indicative of Economic Conditions

Joe Moshé, Broker/Owner, Charles Rutenberg Realty, says the number of last month’s housing starts is a reflection of the economic conditions that month, but added that the increase in future construction permits show that people are showing a more optimistic attitude of hoe the economy will fare in the next few years.

The Commerce Department announced today that, after hitting a total of 744,000 starts in April — the fastest rate in three and a half years — the number of starts in May fell 4.8% to 708,000, falling well below economists’ expectations of 720,000. Mr. Moshé says that home builders saw a decline in consumer confidence, which was why residential construction dropped off last month. According to The Conference Board, the Consumer Confidence Index fell from 68.7 in April to 64.9 in May.

“Consumers were worried about the job market and their own financial situation,” Mr. Moshé said. “They noticed that the jobs weren’t there for them to earn money to save up for a house. Those who are wage earners held off on making such big-ticket purchases. The home construction industry sensed that and, as a result, put up fewer homes on the market.”

However, the Commerce Department also reported that permits for new home construction soared to an annual rate of 780,000, up from 723,000 the prior month. It was the highest level since October 2008. The agency also reported that, although there was a drop in new home construction last month, the number of new home being built is up 28.5%, compared to a year ago.

“I believe the numbers from May will be an anomaly and that the residential Real Estate market will pick up in the coming months,” Mr. Moshé said. “The increase in new home construction permits shows that builders will see a greater improvement in the economy down the road. The number of new homes and the ‘shadow inventory’ that will be available in the coming years indicate a positive economic outlook over the long term.”

Charles Rutenberg Realty is one of the nation’s fastest-growing Agencies with more than 1,300 Agents associated in Long Island, Queens, Westchester, the Boroughs and Manhattan. For more information, call (516) 575-7500, or visit www.crrli.com.

About Charles Rutenberg Realty

Founded in 2006, Charles Rutenberg Realty of New York is one of the nation’s fastest-growing, most progressive Real Estate Agencies with over 1,300 Agents on Long Island, Queens, Westchester and Manhattan. Charles Rutenberg Realty specializes in residential properties in Nassau, Suffolk, Queens, Kings and Westchester Counties. Among the 1,900 independent Real Estate offices represented by Multiple Listing Services (MLS), Charles Rutenberg Realty has the highest market share for available inventory, listings taken for the first six months of the year and listings under contract. Its Agents are trained in the latest creative marketing programs and can fulfill all their clients’ financial and personal needs when buying or selling a home. Charles Rutenberg Realty is headquartered in Plainview, New York, with offices in New York City, Florida and Illinois. For more information, call (516) 575-7500 or visit www.crrli.com.

Hank Russell, Public Relations Director
The Public Relations and Marketing Group
156 North Ocean Avenue
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This release was published on openPR.