Housing starts for July were revised upward +3.6% to a seasonally adjusted annual rate (SAAR) of 1.174 million, and starts in August increased an additional +9.2% to 1.282 million, but permits for future construction were revised downward to 1.303 million (-0.6%) for July and dropped an additional -5.7% to 1.229 million in August. Most of August’s housing starts increase was for multiple unit structures, which were up +27.3%, with especially large increases in the Midwest (+35,000 units), and the South (+37,000 units), while increases in the West were a mix of single family (+28,000) and multiple units (+26,000). On a yearly basis, construction starts were up +9.4%, primarily due to a +37.1% increase in multiple units, with a minor -0.2% offset from a reduction in single family construction starts.

The National Association of Realtors monthly report on Existing-Home Sales noted that strong sales gains in the Northeast (+7.6%) and smaller gains in the Midwest (+2.4%) balanced out sales losses in the South (-0.4%) and West (-5.9%), keeping overall sales in August unchanged from July’s SAAR of 5.34 million, but down from a 5.42 million SAAR for August 2017. The median home price was $264,800, up +4.6% Y/Y, and most houses were in the $100,000 - $250,000 range (38%), followed by houses priced in the $250,000 - $500,000 range (36%). Most buyers were first-time buyers (31%), followed by cash sales (20%), and investors (15%). Unsold housing inventory was unchanged from July at 1.92 million homes, which is a 4.3 month supply, up from a 4.1 month supply for August 2017.

The Empire State Manufacturing Survey reported that business activity continued to grow in New York state, although the pace slowed, with the general business conditions index dropping from 25.6 in August to 19 in September. Firms responding to the survey reported a modest increase in employment and increasing inventories, unfilled orders, and delivery time. The Philadelphia Fed Business Outlook Survey showed an +10.0 point increase in September’s general business conditions index to +22.9, with the same increases in employment, unfilled orders and delivery times as the New York Survey, but the Philadelphia survey found a drop in current inventories. Both the New York and Philadelphia surveys reported continuing optimism for business conditions over the next six months, but expectations were moderating, with New York’s future business conditions index dropping 4.5 points to 30.3, and Philadelphia’s dropping 2.5 points to 36.3.