Housing starts have hit a 17 year low.
While many are moaning about this number, I am ecstatic!
Why, because the construction industry has finally gotten on board that we have an inventory problem and putting more inventory out there right now is counter productive.
Consumer confidence in the real estate industry will only improve when they feel that their homes are not going to decline. The constant addition of inventory to the market has not helped with that.
Data released Tuesday by the Commerce Department showed that construction starts of new homes and apartments fell nationally to an annual rate of 965,000 units in July, a 17-year low. Starts were down 11 percent from June and fell almost 30 percent from their July 2007 level.
Meanwhile, housing permits, considered a reliable barometer of future activity, fell 17.7 percent nationally from June and were down 32.4 percent when measured against revised July 2007 figures. via chicagotribune.com.
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That is some insight as to what is going on. I know the construction industry has slowed a ton in Utah as companies are laying off their employees because they have no jobs. They build homes that are not even being used increasing the inventory.
I am a little surprised that news like this is just starting to come out. I would of imagined several months ago we would of started hearing this. The only market that has not slowed here in the Santa Barbara and Montecito area is the demand for high end properties…including new construction and major remodels. The contractors that have a niche in this hihg-end market here in Santa Barbara have jobs lined up for years to come.
I have to agree since we've seen building projects for many condo complexes in several markets stalling completely. Although comparatively there are more condo developments that are still happening as opposed to new home building. Seems there is still enough remodeling going on though with consumers hoping to sell or gain value on a future market upswing.
know the construction industry has slowed a ton in Utah as companies are laying off their employees because they have no jobs. Same country wide. Real estate is slow everywhere right now.
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