Best of the Week
Most Popular
1. Gold Final Warning: Here Are the Stunning Implications of Plunging Gold Price - P_Radomski_CFA
2.Fed Balance Sheet QE4EVER - Stock Market Trend Forecast Analysis - Nadeem_Walayat
3.UK House Prices, Immigration, and Population Growth Mega Trend Forecast - Part1 - Nadeem_Walayat
4.Gold and Silver Precious Metals Pot Pourri - Rambus_Chartology
5.The Exponential Stocks Bull Market - Nadeem_Walayat
6.Yield Curve Inversion and the Stock Market 2019 - Nadeem_Walayat
7.America's 30 Blocks of Holes - James_Quinn
8.US Presidential Cycle and Stock Market Trend 2019 - Nadeem_Walayat
9.Dear Stocks Bull Market: Happy 10 Year Anniversary! - Troy_Bombardia
10.Britain's Demographic Time Bomb Has Gone Off! - Nadeem_Walayat
Last 7 days
Tory Leadership Contest - Will Michael Gove Stab Boris Johnson in the Back Again? - 19th May 19
Stock Market Counter-trend Rally - 19th May 19
Will Stock Market “Sell in May, Go Away” Lead to a Correction… or a Crash? - 19th May 19
US vs. Global Stocks Sector Rotation – What Next? Part 1 - 19th May 19
BrExit Party EarthQuake Could Win it 150 MP's at Next UK General Election! - 18th May 19
Dow Stock Market Trend Forecast 2019 May Update - 18th May 19
US Economy to Die a Traditional Death… Inflation Is Going to Move Higher - 18th May 19
Trump’s Trade War Is Good for These 3 Dividend Stocks - 18th May 19
GDX Gold Mining Stocks Fundamentals Update - 17th May 19
Stock Markets Rally Hard – Is The Volatility Move Over? - 17th May 19
The Use of Technical Analysis for Forex Traders - 17th May 19
Brexit Party Set to Storm EU Parliament Elections - Seats Forecast - 17th May 19
Is the Trade War a Catalyst for Gold? - 17th May 19
This Is a Recession Indicator No One Is Talking About—and It’s Flashing Red - 17th May 19
War! Good or Bad for Stocks? - 17th May 19
How Many Seats Will Brexit Party Win - EU Parliament Elections Forecast 2019 - 16th May 19
It’s Not Technology but the Fed That Is Taking Away Jobs - 16th May 19
Learn to Protect your Forex Trading Capital - 16th May 19
Gold Ratio Charts Offer The Keys to the Bull Market - 16th May 19
Is Someone Secretly Smashing the Stock Market at Night? - 16th May 19
Crude Oil Price Fails At Critical Fibonacci Level - 15th May 19
Strong Stock Market Rally Expected - 15th May 19
US China Trade Impasse Threatens US Lithium, Rare Earth Imports - 15th May 19
Gold Mind Reader's Guide to the Global Markets Galaxy: 'Surreal' - 15th May 19
Trade Wars and Other Black Swan Threats to Your Investments - 15th May 19
Our Long-Anticipated Gold Momentum Rally Begins - 15th May 19
Defense Spending Is Recession Proof - Defense Dividend Stocks - 15th May 19
US China Trade Issues Will Drive Market Trends – PART II - 14th May 19
The Exter Inverted Pyramid of Global Liquidity Credit risk, Liquidity and Gold - 14th May 19
Can You Afford To Ignore These Two Flawless Gold Slide Indicators? - 14th May 19
As cryptocurrency wallets become more popular, will cryptocurrencies replace traditional payments? - 14th May 19
How US Debt Will Reach $40 Trillion by 2025 - 14th May 19
Dangers Beyond a Trade War with China - 14th May 19
eBook - Greatest Tool for Trading? - 14th May 19
Classic Pitfalls for Inexperienced Traders - 14th May 19
Stock Market S&P 500 Negative Expectations Again - 13th May 19
Why Rising Living Standard in China Offers Global Hope - 13th May 19
Stock Market Anticipated Correction Starts On Cue! - 13th May 19
How Chinese Trade Issues Will Drive Stock Market Trends - 13th May 19
Amazon SCAM Deliveries for Fake Verified Purchaser Reviews "Brushing" - 13th May 19
Stock Market US China Trade War Panic - Video - 13th May 19
US Stock Market Leading Macro Economic Indicators Update - 12th May 19
SAMSUNG - BC94.L - Investing in AI Machine Intelligence Stocks - 11th May 19
US Increases Trade Tariffs Against China – Stock Markets, Gold, and Silver - 11th May 19
Who Has More To Lose In A No Deal Brexit? - 11th May 19
Gold at $1,344 Will Start Real Fireworks on the Upside - 11th May 19
Make America’s Economy Great Again - 10th May 19
Big US Stocks’ 2019 Fundamentals - 10th May 19
Stock Market US China Trade War Panic! Trend Forecast May 2019 Update - 10th May 19
Stock Market Shake-Out Continues – Where Is The Bottom? - 10th May 19

Market Oracle FREE Newsletter

U.S. House Prices Analysis and Trend Forecast 2019 to 2021

US Housing slump continues as housing starts plunge 27%

Housing-Market / Strategic News Nov 19, 2006 - 09:52 PM GMT

By: Sarah_Jones

Housing-Market

Contrary to Alan Greenspans comments last month that the US housing market was showing signs of having bottomed, the latest data released by Commerce Department show that the housing market is still weak and likely to continue to drift lower well into 2007

US Housing slump continues as housing starts plunge 27%


Housing Starts

  • Housing starts fell 27.4 percent since last year to 2,046,000.
  • Housing starts seasonally adjusted fell 14.6 percent to 1,486,000.
  • Single family housing starts in October were 1,177,000. 15.9 percent below September 06.

Building Permits

  • Building permits fell 28.0 percent since last year to 2,131,000.
  • Building permits a seasonally adjusted fell to 6.3 percent to 1,535,000.

Additionally, RealtyTrac's October 2006 U.S. Foreclosure Market Report, showed that 115,568 properties nationwide had entered into the stage of foreclosure, up 42% percent from last year. “So far this year, more than 1 million properties have entered some stage of foreclosure nationwide, up 27 percent from the same time last year,” said James Saccacio, chief executive officer of RealtyTrac. Saccacio states that the data from the last three months shows an increase in foreclosures, causing more pressure on already strained housing markets.

The US housing market is increasingly resembling the last large decline in the housing market which occurred during the lead up to the early 1990's recession, when housing starts dropped over 40% between 1989 and 1991. This leading indicator for future deterioration of economic activity suggests that the risks of a hard landing for the US economy are high and a sell off is likely in the US Dollar as a response to lower interest rates.

The Housing activity is falling more than the 'soft landing' scenario, incorporated into the Federal Reserve's forecast. Which suggests that the Fed could cut interest rates aggressively during 2007, by as much as 100 basis points by the end of 2007.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments


21 Nov 06, 08:29
Re: US Housing slump continues as housing starts plunge 27%
I don't think we will see the same kind of housing slump as in the 1990s, since those days included high unemployment and interest rates, which we do not currently suffer. I think our economy is stronger now, and I also think the banks will work hard with people to avoid foreclosure's etc., i.e. special mortgage payment plans, hardship payment plans etc.




21 Nov 06, 17:37
Arm mortgages readjustung to 3 or 4 times previous rates !
The builders, loan officers, real estate agents, escrow companies, inspectors, appraisers are in panic mode as they don't have the income to support themselves, so 2nd jobs are all the rage. Rents are way down as sellers who are unable to sell attempt to rent at huge negative cash flows.

Many in Pay Option Arm mortgages that are readjusting to 3 or 4 times the previous payment. Same for the Interest Only Arms. Reno is predicted to not hit bottom until summer 2008 so we have a lot of very ugly months ahead of us. And from what I read, Reno is not unique in the housing bubble burst - it's nationwide!

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules