Building Permits in U.S. Jump to Five-Year High

[Purveyor]

Source: Bloomberg

By Victoria Stilwell - Nov 26, 2013

Building permits climbed in October to the highest level in more than five years, signaling the U.S. residential real-estate market will strengthen in 2014.

Applications (NHSPATOT) for new construction rose 6.2 percent to a 1.03 million annualized rate, beating all forecasts in a Bloomberg survey of economists and the highest since June 2008, according to Commerce Department figures issued today in Washington. Other data showed property values last quarter increased by the most in more than seven years.

The data indicated multifamily units are poised to lead the advance in homebuilding in coming months as construction companies look past higher borrowing costs and proceed with larger projects. Another report showed consumer sentiment remains fragile heading into the holiday-shopping season, a sign of growing concern the economy will be set back by political gridlock in Washington.

“Housing will still contribute to growth,” said Brian Jones, a senior U.S. economist at Societe Generale in New York, whose permits forecast was the highest in a Bloomberg survey. “We have had a backup in interest rates, but I don’t think the backup has been large enough to really choke off housing.”

Read more: http://www.bloomberg.com/news/2013-11-26/building-permits-in-u-s-jump-to-five-year-high.html

[Hestia]

1. And lets see what we are getting with these building permits:

Private Hedge Funds are funding corporations to come in and sell a bill of goods to a city, saying they are going to revitalize their downtown and save their old buildings. Oh, they do, it's easier to sell young people on the razzle dazzle of a new up-coming area, where the restaurants and clubs change names monthly, only to open up with the same menu's, etc.

They save the facade, refurbish the building and jack up rental rates for the city or sell 800 sq ft. condos for $300-$500 in a city who's average income is $27,000 per year. Who ITF can afford that?

So the hedge funds swoop in, convince cities to issue bonds to revitalize a depressed area, they do fix up the old buildings, jack up the rents and selling prices way above and beyond anything the city has seen before, the buildings sit empty, so the hedge funds roll up their offices and leave cities with having to pay off the bonds.

Nothing changes, it the same ol' game leaving taxpayers holding the bag.

Call me cynical.