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August 18, 2006
Home-Building Nears 2-Year Low
The Commerce Department reports a 2.5-percent decline in housing starts in July from the previous month to an annual pace of 1.8 million units, marking a nearly two-year low and the fifth straight monthly drop. Starts plunged 13.3 percent from July 2005. National City Corp. chief economist Richard DeKaser attributes the drop in starts to a large supply of unsold existing homes, and he anticipates further declines. However, Quicken Loans chief economist Bob Walters does not expect a dramatic slowdown, as the homebuilding sector will continue to benefit from rapid household creation and interest rates that are still among the lowest recorded in about two decades.
Posted by S. Germain at August 18, 2006 08:28 AM