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USA Housing Recovery CANCELLED.
ad44downey
Posts: 2,246 Forumite
And where the US goes we follow.....
http://news.bbc.co.uk/1/hi/business/8002904.stm
New US house building has stalled
The fall in new home construction was worse than economists had expected.
Housing construction in the US fell to its second lowest level on record in March, official figures have shown.
Construction of new houses and apartments fell 10.8% last month to an annual rate of 510,000 units, the US Commerce Department said.
Applications for building permits, which signal future activity, dropped 9% from February.
Separate government data showed that claims for unemployment benefits fell by 53,000 in the week ended 11 April.
The Labor Department said the number of claims declined from 663,000 the week before to 610,000.
'Mixed news'
The construction data is a stark reminder that the housing slump is far from over.
The decline of 10.8% is much weaker than expected and is obviously a disappointment 
Hugh Johnson, Johnson Illington Advisors
The decline in new starts in March was worse than economists had expected, and followed a 17.2% rise in February.
February's gain had been driven by an increase in apartment activity, which can be a volatile sector.
The March rate was the second lowest since the Commerce Department started keeping records in 1959.
The lowest came in January when the annual rate dropped to 488,000.
Starts were down 54.1% from March 2008 while permits were down 49.5% year-on-year.
"The news is very mixed," said Hugh Johnson, chief investment officer at Johnson Illington Advisors in New York.
"Both the housing numbers and the jobless claims numbers are very volatile.
"The bad news obviously is that housing remains extremely weak. The decline of 10.8% is much weaker than expected and is obviously a disappointment.
http://news.bbc.co.uk/1/hi/business/8002904.stm
New US house building has stalled
The fall in new home construction was worse than economists had expected.
Housing construction in the US fell to its second lowest level on record in March, official figures have shown.
Construction of new houses and apartments fell 10.8% last month to an annual rate of 510,000 units, the US Commerce Department said.
Applications for building permits, which signal future activity, dropped 9% from February.
Separate government data showed that claims for unemployment benefits fell by 53,000 in the week ended 11 April.
The Labor Department said the number of claims declined from 663,000 the week before to 610,000.
'Mixed news'
The construction data is a stark reminder that the housing slump is far from over.
The decline of 10.8% is much weaker than expected and is obviously a disappointment Hugh Johnson, Johnson Illington Advisors
The decline in new starts in March was worse than economists had expected, and followed a 17.2% rise in February.
February's gain had been driven by an increase in apartment activity, which can be a volatile sector.
The March rate was the second lowest since the Commerce Department started keeping records in 1959.
The lowest came in January when the annual rate dropped to 488,000.
Starts were down 54.1% from March 2008 while permits were down 49.5% year-on-year.
"The news is very mixed," said Hugh Johnson, chief investment officer at Johnson Illington Advisors in New York.
"Both the housing numbers and the jobless claims numbers are very volatile.
"The bad news obviously is that housing remains extremely weak. The decline of 10.8% is much weaker than expected and is obviously a disappointment.
Krusty & Phil Madoff, 1990 - 2007:
"Buy now because house prices only ever go UP, UP, UP."
"Buy now because house prices only ever go UP, UP, UP."
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Comments
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Ssssshhh
ours is over...all the EA/people in the"know" have said so...so no more bad news thank you.If you find yourself in a fair fight, then you have failed to plan properly
I've only ever been wrong once! and that was when I thought I was wrong but I was right0 -
Remember.. we're eighteen months behind the States. Way to go yet.0
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Fewer new builds, lower supply, prices won't fall as fast
Since we follow the USA, does that mean the number of people claiming unemployment benefit is going to fall here too in the near future?“I could see that, if not actually disgruntled, he was far from being gruntled.” - P.G. Wodehouse0 -
this is a post about the US building less houses
the title does not match the post
less housing supply = less fall in house prices...........may even = slight increase in house prices0 -
Why would you be building houses when repossesions are going on & prices going down anyway?Not Again0
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1984ReturnsForReal wrote: »Why would you be building houses when repossesions are going on & prices going down anyway?
There are still flood plains available 0 -
New home building in the US started to stall around 2006 - they currently have about 12.2 months supply of unsold new build single family homes. Not flats - houses. It's a bit better than a month ago - as some have sold.
So less building does not mean less housing and higher prices - it means they have a massive over supply of brand new homes and until the inventory is down to historical levels there will be little new building going on.
In a normal ecomony it's about 4 to 6 months supply.
I'm not sure what the supply of unsold new build houses are here - no where near the US I would imagine.0 -
Yep this aint bad news. If there was a boom in housing then this is the other side of the coin and realistic reactions in the market is a positive sign
Supply and demand would seem to indicate that a fall in the supply of future housing would be bullish for the current stock at some point in the future.
Not exactly brillant news for builders but overall this is no negative0 -
baileysbattlebus wrote: »
I'm not sure what the supply of unsold new build houses are here - no where near the US I would imagine.
Very low, most builds cleared stock houses and now build off plan when plots are sold.0 -
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