CNN Money is reporting that new housing starts are down lower than they’ve been in six years, while permits, a key sign of builder confidence, are lower than they’ve been since 1997.
It’s unclear whether builders are being more cautious because of all the media hype of the bursting bubble, or whether they are uncomfortable with all the excess inventory on the market. Either way, builders are taking note.
David Seiders, cheif economist for the national assn. of home builders doesn’t see the news as all bad. He told CNN, “I view the decline in starts as a healthy development. “We know that inventory is too high, so the faster we get back in balance, the better.”
Even though real estate is local, not national, you have to see this phenomenon as a sign of the current times.
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