Housing Market Clue Could Foreshadow An Economic Slowdown
The housing market has been directly tied to the health of the economy, so, when one goes awry, it's very likely that the other won't be too far behind. According to a recent report, a new clue from the housing market could very well point to an upcoming recession.
"Single-family housing authorizations – what some call a key predictor of economic recessions – represent building permits requesting permission to commence construction. In contrast, housing starts signal that construction has already begun," according to HousingWire.
"According to the latest data released by BuildFax, single-family housing authorizations fell for the third consecutive month in February, declining 4.24% from the previous month. This also represents a 5.75% decline year over year."
The report also revealed that existing housing maintenance and remodeling volumes have fallen to a now, four-month decline. Some cities have managed to beat the numbers with increases in new construction and maintenance volume.
Those cities include Dallas, New York City, Chicago and Washington, D.C. Of these four cities, Chicago has seen the largest increases in both new construction and maintenance.
To learn more about the possible signs of an economic slowdown, click on the image above.
