Overview
- U.S. housing starts fell sharply in July, with single‑family starts down about 9.9% and total starts down roughly 12.4%, signaling a pullback in groundbreakings for new homes.
- At the same time, residential construction permits rose in July to their highest pace since February, widening the gap between projects approved and those actually begun and creating a backlog of authorized but unstarted units.
- Pending contract activity also cooled in July to its weakest level so far this year as mortgage rates climbed into the mid‑to‑high 6% range, which has reduced affordability for many typical buyers.
- Regional outcomes diverged: Florida continued to show month‑to‑month sales gains, Minnesota hit a seven‑year July high in inventory, and Redfin found most large metros now favor buyers, giving shoppers more negotiating leverage.
- Builders remain cautious despite a slight uptick in sentiment, with many offering price cuts and incentives to move existing stock, and Canada’s CREA data show a slow move toward more balanced markets that could ease cross‑border pressure on supply and prices.