What is Macro Pulse?

Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
Macro Pulse's timely yet in-depth coverage.

Wednesday, March 31, 2010

Housing Starts and Sales: Parting Ways?

The graph at left shows starts and sales of single-family housing in the United States, as well as a three-month moving average in the ratio of starts to sales. Between early 2006 and (especially) the latter months of 2008, starts and sales meandered toward convergence (i.e., a starts/sales ratio of 1.0). Since the beginning of 2009 (particularly the second half of the year), though, the two metrics have diverged once again; starts have been trending higher while sales have slumped.

Does this portend another die-back in housing starts? Find out our opinion in the upcoming April issue of Economic Outlook, available from Forest2Market.

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