MANASSAS, Va., April 18, 2018 /PRNewswire/ -- The monthly housing starts report released by the Commerce Department on Tuesday, April 17 shows a 2.5 percent increase compared to February, in permits for housing starts in March for privately owned dwellings in the U.S. The report also indicates a much larger – 7.5 percent – increase in permits for starts compared to the same month in 2017. Rosenthal Wealth Management's president Larry Rosenthal gives his analysis on the March 2018 report.
The report says that privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 1,354,000. The report also revised that same figure for February, to 1,321,000. The report shows further, that over the last 12 months, only January 2018 showed more housing starts, 1,377.
Permits for housing of five units or more was up 22.9 percent from the previous month while 2-4 unit permits were down 12.8 percent and single family unit permits were down 5.5 percent.
According to Larry Rosenthal, President of Rosenthal Wealth Management and an often cited financial analyst (see last paragraph): "Housing starts may be the largest economic multiplier we experience, so this is continued good news. Inventory is low and demand is increasing, so as a consequence, prices will as well."
"Investors need to understand that we are going to see continued growth in housing starts in spite of the widely expected rise in mortgage rates in 2018. Increases in interest rates will moderate growth but it will not start or stop it," Rosenthal said.
"At this stage of the business cycle investors should gravitate away from asset classes affected by rising rates and move toward the housing, technology, health care and international sectors. Most importantly, they need to always remain diversified and keep their eye on the downside risk," he said further.
Rosenthal is President of Rosenthal Wealth Management Group, and is a much sought after financial analyst who resides in the Washington, D.C., area. He has appeared regularly on Fox Business News and has been quoted in The Wall Street Journal, CNNMoney, U.S. News and World Report, CNBC's The Nightly Business Report, The Washington Post, USA Today, Money, Bloomberg, The Chicago Tribune, The Fiscal Times, Kiplinger's Retirement Report, Consumer Report's Money Advisor, The Washington Times, Financial Planning, Financial Advisor and others. He is also the host of "Making Money Sense," a weekly radio show on WAVA (105.1) in the Washington, D.C. area.
Contact: Robert Johns,
Rosenthal Wealth Management Group
9265 Corporate Circle
Manassas, Virginia 20110
SOURCE Rosenthal Wealth Management