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December 2, 2008 11:37:35 AM CST

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Nov. Housing Starts Fall 3.7%

Posted Dec 18, 07 10:30 AM CST in Business 

(Newser) – Housing starts fell less than expected in November, but fall they did, extending the worst housing slump since 1991. Starts fell 3.7% and, according to one analyst, probably won’t turn around until the third quarter of next year. Permits issued, which give a picture of future construction, fell to a 14-year low, Bloomberg reports.

“Builders need to build fewer homes if we're ever going to have a chance of getting rid of this inventory,” one economist said. Subprime foreclosures have flooded the market and depressed prices, while tightening mortgage rules have reduced the pool of buyers. And the oversupply problem is about to get worse: Foreclosures hit an all-time high in the third quarter.

Source Bloomberg

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Construction workers frame a new house in Gilbert, Ariz., in this Aug. 31, 2007 file photo. The National Association of Home Builders on Monday, Dec. 17, 2007 said its housing market index, which gauges...   (Associated Press)
Builders work on a new house under construction in Loudonville, N.Y., Thursday, Nov. 29, 2007. (AP Photo/Mike Groll)   (Associated Press)
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subprime mortgages • housing market • housing crisis • mortgage • housing starts • Toll Brothers


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