Building Permits, Current Events, Homebuilders, Housing Starts, Meltdown

Housing starts, stop

From the USA Today:

Construction of new homes fell to a 17-1/2 year low in September and the worsening housing slump and growing turmoil in financial markets helped pushed permits for new homes to a nearly 27-year low.
The Commerce Department said Friday that starts on new homes fell 6.3% to a seasonally adjusted annual rate 817,000 units, slowest pace since January 1991. This was well below the 880,000 rate economists expected.

The September rate of starts on single-family homes fell 12% to a 544,000-unit annual rate, slowest pace since August 1982.

With falling home prices, soaring foreclosures and financial turmoil curtailing the availability of mortgages for prospective home buyers, builders in September were clearly bracing for a deeper downturn.

Applications for building permits fell 8.3% in September to an annual rate of 786,000.

This was the weakest rate for permits since November 1981, and was below forecasts for an 850,000-unit rate. The rate of new permits was in September was 38.4% below September 2007, while total housing starts for the month showed a 31% drop from a year ago.

Well, that doesn’t bode well. Batten down the hatches, there’s a storm a-brewing.

 

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