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June Housing Starts And Its Impact On Your Self Directed IRA

The June 2012 housing starts are out and they show a month-to-month gain of 6.9%. We should note that although that seems a like its a significant number, one number does not make a trend. This means that even though there is an increase of in the number, there are not enough numbers, of any significance, to indicate that this increase is statistically significant. The housing market continues to be off by 67% from the high back in 2006. We are not advocating or suggesting that we should return to those levels, but what it does reflect is the devastation in the housing market.

Apartment Starts – the annualized pace of change in quarterly apartment starts was a contraction of 11.2% in the second-quarter, versus annualized growth of 70.6% in the first-quarter.  That tended to offset the annualized quarterly growth in single-unit structures of 29.0% in the second-quarter, versus annualized growth of 12.7% in the first-quarter.

What does this mean for your self directed IRA?

The housing starts continues to show bottom bouncing, meaning that there is not a clear recovery trend developing. The bad news is that until housing recovers the economy will not recover. The good news is that housing may be at a bottom, and prices do not seem to be going up much. This still appears to be a good buying opportunity to secure real estate in your self directed IRA.

The housing numbers also continue to help paint the picture of a recessionary status for the economy. This would suggest that you continue to make sure that you get an appropriate allocation of precious metals in your self directed IRA.

The information provided is for educational purposes only and are not a solicitation or offering of an investment, investment advice, or tax advice. You should consult with your tax, legal or financial advisor to determine the suitability of any investments made with a self directed IRA account.