March housing construction falls 10.8 percent

[Bindare_Dundat]

March housing construction plunges more than expected to second lowest level on record.

WASHINGTON (AP) -- Housing construction plunged to the second lowest level on record in March, reversing a big jump from the previous month. Economists, however, were heartened by indications that the long slide in single-family construction could be coming to an end.

The Commerce Department said Thursday construction of new homes and apartments dropped 10.8 percent last month to a seasonally adjusted annual rate of 510,000 units. That was the second lowest construction pace in records that go back 50 years.

The decline was worse than economists had expected and February activity also was revised lower. Applications for building permits fell 9 percent in March to a record low of 513,000 units.

[Soul Crusher]

Dont worry, TARP and the stimuls bill are right around the corner and happy days are coming soon.  Hope & Change.  Glimmers of hope and chang everywhere.

[Bindare_Dundat]

TARP and it's related programs are up to $4 trillion so far. Only a few more trillion and it's happy days all over again. 

[shootfighter1]

This is an appropriate responce IMO.  When the market is flooded with houses and over valued, new construction slows.  Its the way the market should correct itself.  If we build too many new houses too soon, the older ones on the market don't sell.  So, housing values fall, you get less new construction and new buyers purchase the houses at lower values.  The only cog in that wheel is getting banks to loan, which is where our major efforts need to be.  If we control our banking system, most things will rebalance in the economy.