Housing Construction, Permits Hit Record Lows

[Purveyor]

Source: Associated Press

(05-19) 08:44 PDT WASHINGTON (AP) --

A modest rebound in single-family home construction in April raised hopes Tuesday that the three-year slide in housing could be bottoming. But with the supply of unsold homes bulging, foreclosures rising and prices falling, no broad recovery is expected until next spring at the earliest.

The Commerce Department said construction of new homes and apartments fell 12.8 percent last month to a seasonally adjusted annual rate of 458,000 units — the lowest pace on records going back a half-century. Applications for new building permits dropped 3.3 percent to an annual rate of 494,000, also the lowest on record.

All of last month's weakness, though, came in the volatile multifamily part of construction. Single-family construction and permits both rose, a signal that this bigger sector of home construction is starting to stabilize.

Construction of single-family homes rose 2.8 percent to an annual rate of 368,000, following a 0.3 percent gain in March and no change in February. Building permits for single-family homes were up 3.6 percent to a rate of 373,000 last month.

"U.S. housing remains very weak, but the stability in single-family units is encouraging," Benjamin Reitzes, an economist at BMO Capital Markets, said in a research note.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2009/05/19/national/w053400D78.DTL

[Baby Snooks]

1. I thought they just announced the recession was ending...

I thought they just announced the recession was ending. Again. What they may mean is that the recession is ending. And the depression is beginning.

[SkyDaddy7]

3. Not true...

The headline is misleading...The numbers do suggest things are beginning to stabilize. The turn around does not happen instantly. The housing bubble busted and it will take time to get back to positive growth. Just like every other bubble did. However, this time every aspect of the economy crashed so it will take longer. I know nobody that I know of here at DU like Obama's economic team but I am not ashamed to say I do! I also like Capitalism and I know Obama & the Congress are going to reform our regulatory system so that crap like this does not happen again...At least not for another 50-70yrs. LOL!

I am very optimistic about the future of our economy. I also know I will probably get pumbled for such strong support of Obama's economic team and policies but thats life.

Yes, I like Geithner!

Yes, I put my money where my mouth is as well...I bought GE & First Solar (although not much as TAT) to hold as they are positioned to benefit off the Stimulus & Obama's budget and to my surprise I have already tripled my money already. Of course the stock market is only a leading indicator of economic turn around but at least it is a positive sign.

I am sorry but I try to stay positive about things. And the data coming out is positive. Lets just hope it continues to get better. Job creation is the lagging indicator and they claim it should begin to turn later this year. I hope it will. The Republicans want Obama to fail as it is there ONLY means of gaining back seats. If Obama's economic policies work the Democrats could control the government for a very long time! Again I am thinking positive.

[Baby Snooks]

4. I'm sure rich Democrats think it's all just grand...

Apparently there are two Democratic parties to go with the two Americas...

[SkyDaddy7]

5. I am anything but rich!

Time will tell if Obama was correct in how he has done what he has done. Other than time no one knows for sure. However, I am not going to deny there positive signs starting to show and much of it has to do with Obama's economic team & policies. I will leave it at that.

Try to stay positive.

BTW-I am premanently disabled on SS & Military Disability...However, I had my ability to have children taken from me due o my injury so I am lucky in a sense I do not have that heart crushing burden to worry about...Even though I kinda wish I did but thats life.

I have learned to try as hard as you can to make lemon out of lemonade...I really did not have a choice and that is all I am trying to say about the economy!

Its hard on us all!

[able1]

2. When banks start lending $ to rich people so they can buy up

all of those foreclosed houses and rent them out, then new single-family home construction will pick up again.

Sec. Geithner is hopefully working on a scheme to "bailout" rich people who are having a hard time borrowing money
at below-prime rates.

[AngryAmish]

6. Way to go, Bush!