17 Year Low For Housing Starts - HOORAY!!!

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Housing starts have hit a 17 year low.

While many are moaning about this number, I am ecstatic!

Why, because the construction industry has finally gotten on board that we have an inventory problem and putting more inventory out there right now is counter productive.

Consumer confidence in the real estate industry will only improve when they feel that their homes are not going to decline. The constant addition of inventory to the market has not helped with that.

Data released Tuesday by the Commerce Department showed that construction starts of new homes and apartments fell nationally to an annual rate of 965,000 units in July, a 17-year low. Starts were down 11 percent from June and fell almost 30 percent from their July 2007 level.

Meanwhile, housing permits, considered a reliable barometer of future activity, fell 17.7 percent nationally from June and were down 32.4 percent when measured against revised July 2007 figures. via chicagotribune.com.