Posts Tagged ‘construction’
January 23rd, 2009 | 
Author: A Commerce Department report released yesterday states that house prices in the U.S. fell by the most in over eighteen years with November prices declining by 8.7 percent from a year earlier.
Moreover, housing starts fell 16 % last month to an annual rate of 550,000 which is the lowest since the government started compiling statistics in 1959.
A major cause is reckoned to be the record number of foreclosures and the highest jobless claims in over twenty six years.
The U.S. lost more than 2.6 million jobs in 2008, the most since 1945, and U.S. stocks had their worst performance since the ‘Great Depression’ and the number of U.S. houses in foreclosure last year rose to an all time high of 2.3 million.
The West Coast which includes California showed the sharpest declines in the house price index and the value of homes there fell by 22 %.
Furthermore, there’s no sign that the housing market has hit rock bottom and many observer believe that data will continue to show a worsening trend until at least 2010.
Shares in construction companies fell 76% over the last three years and builders are slashing their margins to compete with the prices of foreclosed properties which always sell at steeply discount prices and this fact offers perhaps one of only upsides to all the gloom and despair.
There are now some incredible deals available to those that can qualify and banks need to loan money to stay in business so provided you believe that you’ll keep your job this might be a great time to consider purchasing a property.
Posted in builders, construction, crisis, finance, financial crisis, foreclosure, home prices, homeowners, homes, house prices, houses, housing, housing market, Housing Starts, real estate, Unemployment, USA | 
Tags: builders, construction, crisis, finance, financial crisis, foreclosure, home prices, homeowners, homes, house prices, houses, housing, housing market, Housing Starts, real estate, Unemployment, USA | 
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The latest figures coming in suggest that U.S. builders started work on the lowest number of houses since records began and building permits which are a sign of future projects most likely dropped to a record lows as well.
According to estimates, housing starts fell 2.7 % last month (December) to an annual rate of 605,000 which would be the lowest level since the Commerce Department started compiling data in 1959.
The actual housing-starts report for December is due out on January 22 but signs are that construction of new homes fell 21% in November to a 625,000 annual rate.
After seeing their shares lose over 76% of their value over the last three years, builders are slashing prices to try and compete with the record number of foreclosed properties coming onto the market and those close to Obama say he will inject around $100 billion in financial-rescue funds in an attempt to ease the mortgage crisis.
Delinquency filings are said to have risen by 41% in December from a year earlier and starts and home values in twenty major U.S. cities declined 18% in October which is the fastest rate on record.
Falling house prices make it harder for owners to sell their properties and buy new houses and the combination of slumping prices and rising foreclosures is dragging down optimism among construction companies and even record-low mortgage rates have failed to spur a turnaround in the market.
The average U.S. rate on a 30-year fixed mortgage fell to 4.96 % which is the first time it’s ever been below 5%.
Not a bright picture and the number of Americans filing first-time claims for jobless benefits probably rose to 543,000 last week from 524,000 a week earlier.
