U.S. housing starts and permits dropped for the second consecutive month according to the U.S. Census Bureau.

Single family starts dropped 6.8% and building permits dropped 4.0%.

I can hear some of you asking, “And… This is good news?!”

‘Tis indeed…

Because it makes for stronger demand which helps drive more sales, and we need more sales to pick this economy up.

With several months of strong sales in existing and new construction both behind us, we have seen lower inventory levels each month.

Just last week I read that there were only 233 homes listed in the Whitwood area of Whittier.

Also helping this situation is the newly extended and expanded Home Buyer Tax Credit (What’s This?) and historical lows in mortgage interest rates.

This could help ensure strong sales going into next year… But watch out, because both the tax credit and the mortgage rates are going away shortly.