U.S. Housing Starts at 893K in June, Missing Views as Construction Slumps in the South (XHB)

(Updated - July 17, 2014 8:35 AM EDT)

June Housing Starts 893K vs 1020k Expected, -9.3% MoM vs 1.9% Expected

UPDATE - More from the Census press release:

The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for June 2014:

BUILDING PERMITS

Privately-owned housing units authorized by building permits in June were at a seasonally adjusted annual rate of 963,000. This is 4.2 percent (±1.5%) below the revised May rate of 1,005,000, but is 2.7 percent (±1.8%) above the June 2013 estimate of 938,000.

Single-family authorizations in June were at a rate of 631,000; this is 2.6 percent (±1.4%) above the revised May figure of 615,000. Authorizations of units in buildings with five units or more were at a rate of 301,000 in June.

HOUSING STARTS

Privately-owned housing starts in June were at a seasonally adjusted annual rate of 893,000. This is 9.3 percent (±10.3%)* below the revised May estimate of 985,000, but is 7.5 percent (±14.4%)* above the June 2013 rate of 831,000.

Single-family housing starts in June were at a rate of 575,000; this is 9.0 percent (±10.1%)* below the revised May figure of 632,000. The June rate for units in buildings with five units or more was 305,000.

HOUSING COMPLETIONS

Privately-owned housing completions in June were at a seasonally adjusted annual rate of 789,000. This is 12.0 percent (±8.3%) below the revised May estimate of 897,000, but is 3.4 percent (±11.6%)* above the June 2013 rate of 763,000.

Single-family housing completions in June were at a rate of 586,000; this is 6.5 percent (±9.4%)* below the revised May rate of 627,000. The June rate for units in buildings with five units or more was 198,000.

Traders are watching the following stocks and ETFs:

D.R. Horton, Inc. (NYSE: DHI)
Pulte Group (NYSE: PHM)
KB Home (NYSE: KBH)
Lennar Corp. Cl A (NYSE: LEN)
Hovnanian Enterprises Inc. Cl A (NYSE: HOV)
Standard Pacific Corp. (NYSE: SPF)
Toll Brothers, Inc. (NYSE: TOL)
Ryland Group, Inc. (NYSE: RYL)
Meritage Homes Corp. (NYSE: MTH)
Beazer Homes USA, Inc. (NYSE: BZH)
SPDR S&P Homebuilders ETF (NYSE: XHB)

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