Housing Starts See Biggest Drop Since 1984 (Really, Really Bad!)

CNBC ^ | 03/16/2011 | Reuters

[Rational Thought]

U.S. housing starts posted their biggest decline in 27 years in February while building permits dropped to their lowest level on record, suggesting the beleaguered real estate sector has yet to rebound from its deepest slump in modern history.

[Rational Thought]

What these numbers indicate are the actions this administration has taken are a disaster. I submit, had the Government done nothing in relation to housing and financing, this market would be improving now (as it always has) instead of continuing it's plunge. Adding fuel to the fire, now we have Extreme Left Winger Elizabeth Warren and her all powerful Consumer Financial Protection Bureau setting up shop.

Think the economy is improving? Think again.

[Huck]

To me these numbers merely suggest the obvious-—oversupply.

[jimfree]

I guess I’ll be investing in a couple more foreclosures.

[Rational Thought]

Over supply, or a more accurate description, no buyers.

[Puppage]

Please, please....there's so much building going on that we're running out of land!

[WorkerbeeCitizen]

and wholesale price increase of 1.6% is simple under supply - riiiight

[cableguymn]

You are correct.

it will take years for us to use up the over supply.

One market I have seen values go up is mobile homes. People who can’t buy a house are buying them up like candy.

Mine is not for sale and I have had offers of more than I paid for it 2 years ago.

Mobile homes are like cars, they very rarely go up in value.

[scooby321]

Where is unexpected?

[Jim Noble]

What these numbers indicate are the actions this administration has taken are a disaster. I submit, had the Government done nothing in relation to housing and financing, this market would be improving now

No, it wouldn't.

The number of family formations is low and falling. Mexicans and African-Americans aren't going to be buying houses they can't afford.

There are millions of units of excess supply, of two types: Units that will never be sold and which should be bulldozed, and older people's second and third homes that no one wants.

If you think "housing" as it existed from 1985-2007 is going to lead a recovery, you're out of your mind.

[TexasFreeper2009]

There is NO recovery, and wont be until the communist is removed from the white house.

[Rational Thought]

People can’t buy houses because they can’t get financing. I suspect they can get financing on a mobile home or pay cash, due to the lower price.

But just wait. This new Elizabeth Warren Bureau (which will be to lenders what the EPA is to industry) should take care of that.

[muawiyah]

It's at least a 15 year oversupply ~ or as they call it ~ overhang.

The joke in Russia about such events in the West was "Socialism in One Country". They'd say that every time they'd hear about an mind-numbing surplus of anything that distorted the markets.

[Wpin]

This is a good thing...we need to cut supply growth to return the housing market to normal...or, to stabilize it. However, this also means there will not be good news for construction jobs...so mixed blessing. But, important part of bottoming out and future recovery.

[TexasFreeper2009]

I disagree, if the government had done nothing, every idiot that bought too much house would of lost it. THEN, every smart person left would of snatched up everything they could at a bargain, and the problem would of been solved.

The dumb would have become renters, like they should of been all along.

The smart would of made a killing, like they always do.

That is how the market works.

BUT, because the government stepped in, and tried to keep anyone (even the idiots) from getting hurt... EVERYONE will now pay the price for YEARS to come. In fact, we might even have a lost decade now, especially if Obama somehow wins a 2nd term.

[Rational Thought]

I guess I’m out of my mind then.

Financing is not an option for many worthy borrowers anymore, due to Government guidelines and procedures.

Housing was a major component of our economy during the period you mentioned. Even prior to 1985, there was a tremendous rise in values of real estate, followed by a decline (remember interest rates @ 18%?), then a recovery, all without Government moving in to regulate. My point, the free market works and it even would have worked with the current decline. Instead, Government intervention has insured it’s collapse.

[MrEdd]

Some days I want to ping the idiots who were insisting there was no real estate bubble about to pop 6 years ago and mock them, but a lot of them are being mocked by their inflated mortgages and millages every month.

[MrEdd]

Some days I want to ping the idiots who were insisting there was no real estate bubble about to pop 6 years ago and mock them, but a lot of them are being mocked by their inflated mortgages and millages every month.

[MrEdd]

Some days I want to ping the idiots who were insisting there was no real estate bubble about to pop 6 years ago and mock them, but a lot of them are being mocked by their inflated mortgages and millages every month.

[kickonly88]

would’ve, should’ve

[screaminsunshine]

You hit the nail on the head. The communist in the White House is the source. Until he is gone and all the Federal control agencies since 1960 are eliminated and buried the economy will just get worse. The GOP is not going to do any of that. They are too busy trying to save the Socialist Ponzi Scheme they helped to create.