Housing starts as permits fall in April

Reuters ^ | May 17, 2011 | by Lucia Mutikani

[Oldeconomybuyer]

Housing starts and permits for future home construction fell in April as an overhang of homes on the market discouraged builders from taking on new projects, pointing to prolonged weakness in the housing sector.

The Commerce Department said on Tuesday housing starts dropped 10.6 percent to a seasonally adjusted annual rate of 523,000 units. March's starts were revised up to a 585,000-unit pace from the previously reported rate of 549,000 units.

Economists polled by Reuters had forecast housing starts rising to a 568,000-unit rate. Compared to April last year, residential construction was down 23.9 percent, the largest decline since October 2009.

[Oldeconomybuyer]

[Red Badger]

[TSgt]

Residential construction is being crowded out by an oversupply of used homes on the market, in particular, foreclosed properties, which sell well below their value.

Yep...

[scooby321]

I just love that Hope and Change.

[Free Vulcan]

Why build when you can buy a brand new or nearly so home for a fraction of the price?

[screaminsunshine]

I wonder if you can still build a new home and have it be worth what you have in it. Or is it like cars and you lose 20% when you drive off the lot?

[KCengineer]

Bought a foreclosure Friday. It hit the market Thursday. Banks agent did not do his homework and priced it at a huge discount. Point: price and location are as always, key market drivers.

[KCengineer]

In the short run yes.

[Free Vulcan]

Congrats! Always nice to score a good deal like that.

[US_MilitaryRules]

Plus it damn near impossible to build a house with so many regulations. Better off going homeless and using cardboard boxes. Pretty soon the gov will have regulations for that to!

[delbertt]

It seems to me that we are double dipping.In my home town the builgers are nowhere to be seen. Many are fearful og the debt just collapsing our dollar.

[magellan]

"It seems to me that we are double dipping.In my home town the builders are nowhere to be seen. Many are fearful of the debt just collapsing our dollar."

Atlanta area home values:

Down 38% since their peak in June 2007.

They are 19% below mid-2001 values, before the so-called "housing bubble":

[longtermmemmory]

double digit inflation

double digit real unemployment

double digit devaluation of assets

double digit devaluation of savings

is there any question we are in a double dip recession?

[Sarajevo]

I still see construction in the San Antonio area. Huge Mcmansions on pathetically small lots, farm and ranch land being sold for developments.....

You'd think those jokers would have learned their lesson by now.