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And news alert housing starts falling almost 9% in January from December after surging close to 16%.
Back in December.
Now despite the dip this month's level still third highest since 2008 -- meltdown all this taking it whole.
I'm told Brothers after its earnings fell short of Wall Street expectations.
And joining us -- direct all this.
We've got buck -- the senior VP at Raymond James thanks for being with us.
But -- kind of mixed news and a new home construction I -- -- up 44% over a year ago but we are down more than Wall Street had expected -- -- gonna play.
Well I think via housing starts -- you gotta keep in mind the multifamily component in the starts number was highly volatile it's really statistically and reliable.
And that was the real driver for why housing starts fell short of the consensus estimates for today.
The single family starts number was up very modestly maybe about 1% from December.
From the prior -- -- so the the theme here is the steady recovery in housing continues the internals of the the -- starts data.
Particular when you get to the permits numbers.
We're still very consistent you know still showing signs of steady recovery gradual improvement.
We do see a few signs that they're -- -- be as a couple speed bumps ahead in -- -- thirteen things issues related to.
Skilled labour availability trying to number finished lots that are on the ground and -- mortgage availability for consumers are my book but overall yet got it -- until the white gave -- -- -- -- you say the recovery started in all of 2011.
And at home.
Building stocks up 120% since it is it too late -- buying and which ones would you buy now.
Well I think we're in a period right now where we need to be cautious because the valuations in the expectations are are very full.
For a lot of homebuilding stocks one of the key themes that is occurring right now.
Is that there's a strict bifurcation right now.
In demand we're still seeing strong outperformance among the luxury homes active adult or move up oriented homes.
All the builders are trying to migrate to higher price points because the first time buyer -- the entry level consumer to the housing market is still.
Unfortunately blocked out of the game right now because of the mortgage availability out there so we stick with the higher branded names like -- told Brothers which is getting clobbered today.
But told Brothers is doing quite well for itself and and names like pull.
OK Paul Schulte told -- Standard Pacific now it seems like a lot of activity are saying and so the notes here.
It is investors buying homes instead of homeowners who want to live in those homes that bother you.
Well it's it's unique.
We're seeing the emergence of -- entirely new industry which -- the institutionalization.
Of single family rentals.
And they weren't -- a number of I think probably number of new public companies emerging over the next couple years.
Around this steam and single family rentals will be -- a recurring thing because.
We're gonna have millions of households that either can't or won't do to have flexibility reasons.
Buy -- house or or get a mortgage for themselves and they're gonna need.
Rental options and a lot of those options will need to be single family homes and so it's -- really transfers of ownership.
Oh the real issues we need to fill those single family rentals.
But what it is doing right now it's drying up the inventory dramatically in inventories good propriety dissing him.
Exactly right as -- very much for being with us are about -- -- -- run we appreciate you being here today -- Interest.
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