Nov. Housing Starts Fall 3.7%

And permits for new homes fall to 14-year low
By Kevin Spak,  Newser Staff
Posted Dec 18, 2007 10:30 AM CST
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)
camera-icon View 1 more image

(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.