Jan 17 2008
New Construction has hit a 17 year low
According to FoxNews.com, there have been reports that we are entering the worst new housing market in nearly 20 years. If you want a more staggering number, new house starts are down over 38% from the previous year. This amount to a great amount of homes not being built. One of the statistics that strikes me odd is the month to month changes we are coming across. If you are down 10% one month, the next month you are down 8%, these are compiling numbers. So in essence (if I do the math right) say there are 100,000 homes built in December, January there are 90,000, and February there are 82,800 homes being built (8% less, but 17.2% less that December) and it continues in a downward spiral. Not a good thing.
Numbers can be confusing, but one thing is very obvious right now, the market is in horrid shape, and there is no sign for change anytime soon. There is news of Bush trying to infuse the market with money, basically giving us a rebate for taxes paid, and cutting payroll taxes on a temporary basis. The market/ economy is not strong, and even when there are signs of good market health, there is a huge drop off or correction shortly following. Expect a follow up article on that issue in the next couple of days.