New home construction sinks 10%

[Bindare_Dundat]

NEW YORK (CNNMoney.com) -- New home construction fell sharply in May -- the first month after a homebuyer tax credit expired -- from a month earlier, according to a government report released Wednesday.

Housing starts fell 10% from April to a seasonally-adjusted annual rate of 593,000 last month, the Commerce Department said. Economists were expecting housing starts to fall to only 655,000.



New construction of single-family homes, the key sector of the housing market, plummeted 17.2% over the month to an annual rate of 468,000. The annual rate for new construction of multi-family homes -- buildings with 5 or more units -- was 112,000.

April was the last month in which first-time homebuyers could qualify for a federal tax credit of up to $8,000.

[Soul Crusher]

Who would have guessed? 

Everyone needs to buy this book and you will know probably 1000% more than 99% of the population on thiese issues. 

[The Showstoppa]

Honestly, i wish it would in my area.  It would help keep housing values up for those of us who already own.  They have been over-building for years here.

[GigantorX]

NEW YORK (CNNMoney.com) -- New home construction fell sharply in May -- the first month after a homebuyer tax credit expired -- from a month earlier, according to a government report released Wednesday.

Housing starts fell 10% from April to a seasonally-adjusted annual rate of 593,000 last month, the Commerce Department said. Economists were expecting housing starts to fall to only 655,000.



New construction of single-family homes, the key sector of the housing market, plummeted 17.2% over the month to an annual rate of 468,000. The annual rate for new construction of multi-family homes -- buildings with 5 or more units -- was 112,000.

April was the last month in which first-time homebuyers could qualify for a federal tax credit of up to $8,000.

Spot on. Without the market distorting bribes the govt. was handing out the market will collapse again and we will be back to square one. The Admin. is desperately trying to reflate the bubble but it is destined to collapse further. Which it has too, so much $$$ and capital is being destroyed by trying to keep the suckers bet going. My fiance wanted to buy a lot earlier in the year and I have been holding off and content with staying in our aprt., saving a bunch of cash and paying off debt.

Just wait a bit longer and the prices will drop even further. Could you guy imagine if the the GSE's/Banks/Fed/Complex actually DIDN'T keep a ton of houses off the market to try and artifically drive up prices? Good lord that's a low price!!!

[Soul Crusher]

Spot on. Without the market distorting bribes the govt. was handing out the market will collapse again and we will be back to square one. The Admin. is desperately trying to reflate the bubble but it is destined to collapse further. Which it has too, so much $$$ and capital is being destroyed by trying to keep the suckers bet going. My fiance wanted to buy a lot earlier in the year and I have been holding off and content with staying in our aprt., saving a bunch of cash and paying off debt.

Just wait a bit longer and the prices will drop even further. Could you guy imagine if the the GSE's/Banks/Fed/Complex actually DIDN'T keep a ton of houses off the market to try and artifically drive up prices? Good lord that's a low price!!!

Spot on.  Same thing here.  I have been holding up and building up cash reserves since i know housing has more to go.  I am still looking daily for deals in Greenwich and Fairfield County in CT (I'm sick of NYC), but waiting for the prices to go down some more.   

[Bindare_Dundat]

Well, it looks like all three of us are on the same page as far as building up cash reserves is concerned. I was also in the same situation with the woman wanting to look for a new place but I'm hanging for a while longer as the next round of harsh deflating home prices will start soon.

75% of modified home loans will redefault

NEW YORK (CNNMoney.com) -- Most borrowers who have had their mortgages modified through a government-sponsored program will redefault within 12 months, according to a report released Wednesday.

Between 65% and 75% of loans that are modified through the Home Affordable Modification Program but not backed by the federal government are likely to go bad, according to the report released by Fitch Ratings, a N.Y.-based credit-rating agency