Construction of new homes plummets in April

[mahatmakanejeeves]

Source: USA Today, Associated Press

WASHINGTON (AP) — Construction of new homes plummeted in April, another troubling sign for the battered housing market.

The Commerce Department says construction of new homes fell 10.6% in April from March to a seasonally adjusted annual rate of 523,000 homes. That's down nearly 25% from one year ago and less than half the 1.2 million homes per year that economists consider a sign of a healthy market.

Tighter lending standards and millions of foreclosures are weighing on the housing sector, which is in the midst of one of its worst years in history.

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Read more: http://www.usatoday.com/money/economy/housing/2011-05-17-housing-starts-fall_n.htm

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Here are the links to the Commerce Department's U.S. Census Bureau:

New Residential Construction

Current Press Release

FOR IMMEDIATE RELEASE TUESDAY, MAY 17, 2011 AT 8:30 A.M. EDT

Erica Filipek or Stephen Cooper
Manufacturing and Construction Division
[phone]

NEW RESIDENTIAL CONSTRUCTION IN APRIL 2011
The U.S. Census Bureau and the Department of Housing and Urban Development jointly announced the following new residential construction statistics for April 2011:

BUILDING PERMITS
Privately-owned housing units authorized by building permits in April were at a seasonally adjusted annual rate of 551,000. This is 4.0 percent (±1.1%) below the revised March rate of 574,000 and is 12.8 percent (±1.2%) below the revised April 2010 estimate of 632,000. Single-family authorizations in April were at a rate of 385,000; this is 1.8 percent (±1.0%) below the revised March figure of 392,000. Authorizations of units in buildings with five units or more were at a rate of 143,000 in April.

HOUSING STARTS
Privately-owned housing starts in April were at a seasonally adjusted annual rate of 523,000. This is 10.6 percent (±13.0%)* below the revised March estimate of 585 000 and is 23 9 percent (±7 0%) below the revised April 2010 rate of 687,000.

HOUSING COMPLETIONS
Privately-owned housing completions in April were at a seasonally adjusted annual rate of 554,000. This is 4.1 percent (±15.2%)* above the revised March estimate of 532,000, but is 25.5 percent (±8.6%) below the revised April 2010 rate of 744,000. Single-family housing completions in April were at a rate of 420,000; this is 14.4 percent (±12.8%) above the revised March figure of 367,000. The April rate for units in buildings with five units or more was 118,000.

New Residential Construction data for May 2011 will be released on Thursday, June 16, 2011, at 8:30 A.M. EDT. Our Internet site is: http://www.census.gov/newresconst

* 90% confidence interval includes zero The Census Bureau does not have sufficient statistical evidence to conclude that the actual change is different from zero.

[msongs]

1. banks refuse to dispose of excess houses at market rates....yet they pay interest at "market rates"

[n2doc]

2. Why anyone would be building now is beyond me n/t

[AllyCat]

3. I keep wondering who is going to buy 523,000 homes.

Existing homes sitting vacant and we're using resources to build more? In this economy? Banks just a sittin' on 'em.

[4dsc]

4. why built with 10,000 of foreclosures?

I don't see why anyone would want to build with so much excess housing available at rock bottom prices all around America.