US Housing Starts: Expected decline in January, outlook favors modest gains in 2017 - Wells Fargo

According to analysts from Wells Fargo, the decline in US housing starts in January was in line with expectations. They look for modest gains in 2017. 

Key Quotes: 

“Overall housing starts fell 2.6 percent in January, with the volatile multifamily sector accounting for the entire drop. Single-family starts rose 1.9 percent to an 823,000 unit pace. Building permits rose 4.6 percent.”

“The slight 2.6 percent drop in housing starts in January was largely in line with expectations. January’s decline was concentrated in the volatile multifamily sector, where apartment building is showing some signs of cooling off.”

“January is one of the slowest months for homebuilding each year and the reported numbers are heavily influenced by seasonal adjustment.”

“We continue to look for modest gains in homebuilding this year and expect overall starts to rise 6.3 percent to a 1.24 million-unit pace. Single-family starts should rise 10.1 percent.”