McGraw-Hill Review: residential construction starts dropping
According to the September edition of the McGraw-Hill Constructions & Housing Review, residential housing starts is down 6 percent, that’s $240 billion at an annual rate, with single family housing down an additional 7 percent.
It’s a buyers market with the inventory rising and home sales dropping. The increasing rate of foreclosures is only making the problem worse. Until the excesses are worked off, don’t expect construction starts to go up for at least a year.
The sub-prime mortgage crisis is having a negative impact on the housing market, making the downturn worse.
While the market looks bleak here in the valley, we haven’t gotten the worst of it. Year-to-date, the South Atlantic was hit the hardest with 32 percent drop in housing starts.
