Housing Starts Plunge 14%



Builders in the U.S. broke ground in
December on fewer houses than forecast, making last year’s
decline in homebuilding the worst in almost three decades.   

The 14 percent decrease to an annual rate of 1.006 million,
the lowest since 1991, followed a 1.173 million pace the prior
month, the Commerce Department said today in Washington. For all
of 2007, starts were down 25 percent, the biggest decline since
1980, to 1.354 million.   

Building permits, a sign of future construction, declined
by the most in 12 years, suggesting the housing slump will
deepen as it enters a third year. Rising foreclosures will throw
even more houses onto the market, hurting property values and
threatening to push the economy into recession, economists said.

Some other specific details:

December 2007 starts down 34.4% year over year from December ’06, and off -56% from January 2006 peak.

November 2007 new home sales at a 12 year low, inventory at 9.3 months at the current sales rate


U.S. Housing Starts Drop to Lowest Level Since 1991
Shobhana Chandra
Bloomberg, Jan. 17 2008


Housing Starts Plunge 14%, Marking Lowest Level Since 1991
January 17, 2008 9:09 a.m.

Category: Psychology, Real Estate

NYSE % of stocks > than 200 Day Moving Average

Category: Psychology, Technical Analysis

Goldman Smart. You Dumb.

Category: Corporate Management, Credit, Derivatives, Trading

Bernanke: Fed Must Avoid Greenspan Errors

Category: Federal Reserve, Financial Press, Politics, Taxes and Policy

Five Steps to Becoming a Billionaire (Greenspan Method)

Category: Derivatives, Federal Reserve

Fast Money 1ST Anniversary

Category: Financial Press

Read it here first: Fed Says Holiday Sales Disappointing

Category: Consumer Spending, Economy, Federal Reserve, Retail

2008 vs 1992

Category: Data Analysis, Economy, Psychology

Bureau of Weights and Measures

Category: Data Analysis, Inflation

How Rational Are Markets?

Category: Economy, Markets, Psychology, Trading