Tuesday, May 19, 2009

Housing Starts..."unexpectedly fell"?

Posted by: Aaron West-Guillen
Land Specialist / Land Entitilement Consultant
775 336 4674
Aaron West-Guillen has 15 years of land acquisition, entitlement and development experience in northern Nevada.

“The Commerce Department reported that housing starts unexpectedly fell in April, brought down by a large decline in apartment groundbreakings that offset a modest increase in single-family housing starts. Housing starts dropped 12.8% to a seasonally adjusted 458,000 annual rate compared to the prior month, the Commerce Department said.”

Housing starts "Unexpectedly fell? " With construction lines-of-credit that fund housing starts being withdrawn by lending institutions daily, new foreclosure filings surging beyond historic highs and the median sales price in most communities plummeting to below replacement cost; how can this be "unexpected?"

In order to compete with the distressed residential properties currently overwhelming the market, builders would have to price new housing starts with the intent of losing money; not a good business model…

1 comment:

Toomuchcoffeethisamwheeee said...

Housing Starts... It's obvi they've fallen in the last few months & who would want to continue building anything that has no profit involved? New Construction will hault. The foreclosures will eventually dry out..& then a giant whiplash & demand for New Construction will emerge from the sky like a hurricane sweeping through the Nation. Reno is a small farm town compared to many other cities in the Nation...Imagine how much damage that hurricane could inflict here? and by damage, I mean potential income :)