A lot of folks were turning the tables on some scary looking numbers yesterday, namely that housing starts and permits were down much farther than expected.
The consensus was that’s a good thing because it will inevitably bring down inventories. Simple math: the fewer homes you start, the fewer will end up on the market.
But most missed an even better, less-long-term indicator from the same report, namely the “housing completions” number, which dropped 17 percent from the month before. These are homes that are going on the market immediately. To see an even larger drop in these homes is even better news for the over-glutted inventories.