New home starts in January dropped by 16.8% from December and were down 56% below year-ago levels. Total housing starts sank to a 466,000 seasonally adjusted annual rate and single family home starts dropped to a 347,000 annual rate. This is down 79% from the peak rate three years ago. Read the full report
The sustainable annual rate for new single family home starts is around 1,000,000 homes per year. We got above that during the bubble and are paying for it now with foreclosures and empty inventory. I would not be surprised to see single family home starts drop to 250,000 for a 4-month average and 218,000 for a minimum. Home builder expectations are still near an all time low.
In the Midwest, new home starts are down 29% from December and 66% below one year ago. One Chicago-based builder, Pasquinelli Homes, confirmed Monday that they have halted all construction. Pasquinelli ranked as the nation's 24th largest builder in 2007. In addition to Chicago, they also have developments in Indiana, Ohio, Pennsylvania, West Virginia, the Carolinas, Georgia and Texas. Pasquinelli also does business under the name Patriot Homes. Bigbuilderonline
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