View Full Version : Housing starts see biggest drop since 1984

03-16-2011, 10:46 AM
More hope and change!!

<span style="color: #000000">
WASHINGTON (Reuters) - Housing starts posted their biggest decline in 27 years in February while building permits dropped to their lowest level on record, suggesting the beleaguered real estate sector has yet to rebound from its deepest slump in modern history.

Groundbreaking on new construction dropped 22.5 percent last month to an annual rate of 479,000 units, according to Commerce Department data released on Wednesday. This was just above a record low set in April 2009 and way below the estimates of economists, who had been looking for a smaller drop to 570,000.

January's figure was revised up to 618,000 units from 596,000. But that did not change the tenor of the report, which confirmed that the sector is failing to recover despite interest rates near record lows.

Building permits, a hint of future construction demand, fell to a record low of 517,000 units from a revised 563,000, and were down by about 20 percent from levels seen in February 2010.

Housing was at the epicenter of the financial crisis of 2007-2009.

One key impediment to the sector's recovery is a vast backlog of unsold inventory, while a shaky job market has also made consumers reluctant to embark on any major new financial commitments. Making matters worse, a glut of foreclosures, stalled in recent months by revelations of improper loan documentation, is depressing the market.</span>

03-16-2011, 11:35 AM
Obama fixed the housing market we were told ... the new story must be that Bush broke it again.

03-16-2011, 12:03 PM
Nobody said Obama fixed the housing market except you that I've ever seen. Clearly this is an on-going problem and everyone knows we have not yet hit the bottom, as prices continue to fall each month.

03-16-2011, 12:23 PM
So what was all that business with TARP, QE1, QE2, bank bailouts and various other monetary maneuvers?
As the housing industry goes so goes the economy.

03-16-2011, 12:35 PM
Then there is the obvious conclusion that an economic problem that was the result of too much debt, both private and public, cannot be solved by piling on huge new debt. Anyone would have to use convoluted logic to justify that.

03-16-2011, 04:37 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: Sev</div><div class="ubbcode-body">Really?
So what was all that business with TARP, QE1, QE2, bank bailouts and various other monetary maneuvers?
As the housing industry goes so goes the economy. </div></div>

The housing bandaid fix program was HAMP, mainly, and if you said THAT had failed, you'd be right. Even though it was a relatively modest program that couldn't possibly fix all the housing problems, and was only an attempt at helping some homeowners get refinanced at lowered terms.

So, of course, as all know, O has not fixed it, and as all should know, nobody and nothing can fix it.

A vast oversupply of housing was put up to satisfy the speculative bubble, and until that inventory has been liquidated, no housing price recovery, or even stability, is going to happen.