According to the Commerce Department, new home construction fell by almost 6% in February. Not surprising though given that the country was virtually snowed out. But what is important to note is that, building permits, which really has no linkage to bad weather, fell by as much as 1.6%.
Importantly, the total number of homes under construction fell to 492,000, the lowest on records since 1970. So much for recovery. Though given the inventory glut, this might not be a bad ploy. Problem though is that with the house buyers' credit programme about to end soon, more pain is in the offing.
Importantly, the total number of homes under construction fell to 492,000, the lowest on records since 1970. So much for recovery. Though given the inventory glut, this might not be a bad ploy. Problem though is that with the house buyers' credit programme about to end soon, more pain is in the offing.
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