Housing starts plunge to six-year low

[swag]

http://www.marketwatch.com/News/Story/Story.aspx?siteid=mktw&guid={025711B1-3993-424D-8690-9764E3C7F29B}&dist=bnb

WASHINGTON (MarketWatch) -- Home builders retreated on a massive scale in October, dashing hopes for a quick turnaround in the nation's housing market.

Starts of new homes plunged 14.6% last month to a seasonally adjusted annual rate of 1.486 million, the lowest level since July 2000, the Commerce Department estimated Friday.

Building permits fell as well, down 6.3% to a seasonally adjusted annual rate of 1.535 million, the lowest in nine years. It was the largest percentage decline in permits in seven years.

Housing starts are now down 27.4% from October 2005 levels, and building permits are down 28% on a year-on-year basis. So far in 2006, starts are down 11.1% compared with the first 10 months of 2005.

October's decline was much larger than expected by Wall Street economists, who had been forecasting a 4.5% drop in starts to 1.69 million as well as a marginal decline in building permits to 1.62 million.

. . .

[ixion]

1. what deluded fool had 'hopes for a quick turnaround'?

I think that is wishful thinking, at best. Maybe the 'analyst' who had these hopes should take a look at reality for a change. :eyes:

[hatrack]

2. The National Association of Realtors comes to mind . . .

After all, "It's a great time to buy or sell a house."

http://www.burbed.com/page/2/

Kind of like "It's a great time to buy or sell this particular stock."

:eyes:

[nealmhughes]

4. For those in real estate as a second sideline, it is a great time to buy a house.

Price vs. location/amenities ratio is fantastic right now. Bad for the owners who want out of their maturing balloon payments, good for those with enough cash/credit to buy now.

Sad for the people who bought then, thinking that the inflated market would stay that way, of course, but then again, a bubble is not a good thing to jump upon -- they tend to pop.

[superconnected]

5. Home owners everywhere who bought high. I have one sitting close to me

at work right now. Serious denial.

[BootinUp]

3. Hope it bottoms out soon.

This is not looking good.