Posted on 11/17/2006 5:54:26 AM PST by green iguana
WASHINGTON (MarketWatch) - Home builders retreated on a massive scale in October, dashing hopes for a quick turnaround in the housing market.
Starts of new homes plunged 14.6% in October to a seasonally adjusted annual rate of 1.486 million, the lowest level since July 2000, the Commerce Department estimated Friday.
Building permits fell 6.3% to a seasonally adjusted annual rate of 1.535 million, the lowest level in nine years. It was the largest percentage decline in permits in seven years.
(Excerpt) Read more at marketwatch.com ...
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
How can this be?
Don't people know that the Democrats are in charge now?
Where I live, there is a huge surplus of unsold houses and falling prices, yet local buiding appears to be going full bore ahead. I doesn't make sense, but new house appear to be going up as fast as they can build them. I think somebody didn't get the messagte.
Pelosi's fault.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus
The gap between inventories and sales is 10 times bigger this time around.
I shudder to think about the consequences from irresponsible lending practices.
The Fed will have to step in if they already haven't and re-liquefy the system before a general loss of consumer confidence occurs.
It is the Fed's job to keep sentiment positive.
This is what happens when speculators abandon an investment class en masse over a short period of time.
BUMP
LOL!!
The house next to me was bought as an investment property. The landlord, who lived 1000 miles away, let a property management group rent it for him. The tenants promptly burned the house down. The owner was under-insured, but managed to get the house re-built after 2 years. It's for sale now, but he's asking 2X what it's worth, so there it sits. It's kinda nice--the neighborhood's been quiet since the barn burning!
Zillow.com hasn't gotten the message yet; this rental home is $50K more than it was when we moved here from CA... and still overpriced!
Where are you?
Wonder how that corrupt Fannie Mae fares in this.
"...the smart money stepped in only when the houses were being sold on the court house steps, for taxes."
That's exactly what I'm waiting for, buttom-feeder swine that I am.
:-)
Anecdotal evidence does not trump empirical evidence.
FWIW, I live in Seattle and prices are still going up - somewhat anyway. There is LOTS of construction going on. Boeing is BOOMING.
I still think we will be hit. I have too many friends in the business, as Real estate agents and mortgage brokers. There are some just plain wierd indicators that they have never seen before, and some of them have been in the business for decades.
>>That's exactly what I'm waiting for, buttom-feeder swine that I am.<<
Me too. I am thinking late 2007 or, more likely, mid 2008.
Looks like a few builders are going to get caught with their pants down.
Pelosi's Fault!
We're also going to have to eventually address the glut of smiling realtors caused by the exploding housing market of the last few years. I suggest a government program to retrain them as foreclosure auctioneers.
But what are all of the illegal immigrant construction workers going to do? /sarc
Mexico's economy might fail due to workers not being able to wire money back to Mexico.
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