Housing starts plunge to six-year low

[ckramer]

Home builders retreated on a massive scale in October, dashing hopes that the bottom has been found in the troubled housing sector.

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.

"The worst in the housing sector has not yet passed," said Ray Stone, chief economist at Stone & McCarthy Research.

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B025711B1%2D3993%2D424D%2D8690%2D9764E3C7F29B%7D&siteid=mktw&dist=

[swag]

1. Pssst. That data point came out last week.

I think the linked story is also dated Nov. 17.

[lapfog_1]

2. The market has yet to reach capitulation...

where the sellers are so desperate to sell and no one wants to buy... and the prices are in free fall.

Maybe by next summer.