Capital Commerce

Housing Market Implosion Continues

By James Pethokoukis

Posted: December 16, 2008

It only gets worse. From IHS Global Insight:

1) Housing starts plummeted 18.9% in November, to a seasonally adjusted annual rate (SAAR) of 625,000 units.

2) Data revisions lowered October's estimate by 20,000 to 771,000.

3) Single-family starts dropped 16.9%, to a record low 441,000 units (SAAR); multiple-unit starts fell 23.3%.

4) Permits dropped 15.6%. Single-family permits—the key number in the report—fell 12.3%.

5) By region, starts plunged 34.6% in the Northeast, 23.1% in the Midwest, 16.8% in the West, and 15.6% in the South.

6) The permits estimates point to a possible double-digit drop in starts in both December and January.

Outlook: This may be the worst housing report ever (data starts in 1947). Not only did housing starts, housing permits and single-family starts plunge to all-time lows, the double-digit drop in permits points to further two-digit drops in starts in December and January.

Annoyance

Who is the anonymous idiot who manages to leave the first comment after every post? Whoever you are, your obsession is a little odd.

of AR @ Dec 16, 2008 17:40:06 PM

House Price Index to Watch

I can definitely see the housing market getting worse before it gets any better. The IAS360 house price index (http://www.iasreo.com/ias360update.html) which analyzes down to the county level has identified some signs of strengthening in counties that are located in ground zero states of the housing crisis but these are the exception. These exceptions are going to be key indicators for the housing market’s recovery.

Erik of CO @ Dec 16, 2008 14:29:30 PM

What would Schumpeter say?

With a huge inventory glut, a drop in housing starts is the first step to getting legs back under home values. Bad news for construction workers, good news for anyone who has to sell a home in the next six months. Bad news also for marginal home builders, but so go the creative winds of destruction.

Tom Hanna of MO @ Dec 16, 2008 13:19:42 PM

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Capital Commerce

Capital Commerce

U.S. News business reporter Matthew Bandyk examines the issues, people, and debates that shape the nexus of political and economic life in the nation's capital.

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