[tc45a]

Incorrect. Seasonally adjusted Annualized Starts were 510,000 in March compared to 572,000 in February.

You are right-I stand corrected.

By Courtney Schlisserman and Sho Chandra

May 4 -- Pending sales of U.S. existing homes posted their first back-to-back gain in almost a year in March and construction spending ended a six-month slide, spurring a rally in stocks and sell-off in Treasuries

[Wyatt's Torch]

Home sales are good...thanks to record decline in prices thanks to foreclosures. We are still well over 18 months away from any rebound in housing construction. We will remain in the 500,000 - 600,000 range of starts throughout FY 2009 and at lease through mid-FY 2010. There is just too much inventory.

BTW the historical average for housing starts from 1959 - 2009 is 1.5 million. Current levels are 34% of the average over the 50 year time horizon.