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U.S. housing starts fell less than expected in October as a drop in groundbreaking for multi-family units narrowly outweighed more new construction of single family homes.
The Commerce Department said on Thursday housing starts edged down 0.3 percent to a seasonally adjusted annual rate of 628,000 units. Analysts had expected the annual rate would fall to 610,000.
Housing starts for buildings with two or more units fell 8.3 percent to a 198,000-unit rate. Single-family home construction -- which accounts for a larger share of the market -- increased 3.9 percent to a 430,000-unit pace.
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Why does Uncle Sam want higher home prices? Is it wrong if people can actually save to buy a home cash down? Why do they allow mortgage interest deduction from tax? Was housing bubble intentional? Was sub-prime intentional? Google for "How do banks create money" to understand the modern day slavery imposed upon developed nations.
Short Answer...A Ponzi Scheme cannot survive deflation
Because home values are the main source of wealth in the country. If home prices drop, as they are now, the bulk of the country is worth less. People who are worth less, hoard the money they have. If they don't spend it, companies don't make as much profit. Lower profits mean layoffs. layoffs mean less people with money. Less people with money means less consumption. Less consumption means recession.
Home prices aren't the reason people can't save to buy a house with cash, the reason is because people in America aren't paid enough to live here anymore.
Google middle class wages and see how they have stagnated since the 1970's but the cost of living has continued to rise.
Long Term permanent jobs will not increase until maker jobs are returned to the USA. – Fair Free Trade – The key to sustainable recovery is the return of manufacturing (maker) jobs to the USA. US American Jobs will not return to the USA until 3 / 4 of our Local Governments adopt a policy of County Wide Fair Free Trade Zones. Where all products and/or services offered for sale/use in “The Zone” (be it county, state, or nation) must be produced and/or provided in accordance with all USA; quality, safety, health, environment and wage standards, and no one is even talking about this option. Go to: www.manifestry.info > Fair Free Trade
my impression of this is this: it is absolutely not be the NEW home market , but the EXISTING home market that drives the housing industry...sure, there are people everywhere moving from city to city, but realistically, how many of those are buying new homes? i've been the same market for a few years, haven't bought, but I'm still focused on older homes and forclosures...It makes no sense at all to me to pay full price for a new home in a (STILL) declining market...comments?