April 2008 Starts

Single-family housing starts fell 1.7% in April to a level not seen in 17 years as the rapid decline in construction activity appears to be slowing. The U.S. Census Bureau reported that single-family housing starts declined from a seasonally adjusted annual rate of 704,000 in March to 692,000 in April. The bureau revised the March number upward by 24,000 starts. However, single-family starts are down 44% since April 2007 and fell below 700,000 in April for the first time since 1991. Few builders expect market conditions to improve over the next six months, according to a National Association of Home Builders/Wells Fargo survey. "Despite the Federal Reserve's concerted efforts to lower short-term interest rates, free up credit markets and shore up the national economy, the housing market has shown no evidence of improvement thus far. In fact, conditions have continued to deteriorate in recent times," said NAHB chief economist David Seiders.