Housing Starts Decline to New Low

Single-family housing starts plummeted 17% in November to the lowest level since 1959 (when the government started keeping records) and it could go even lower in the months ahead. The U.S. Census Bureau reported that single-family housing starts dropped from a seasonally adjusted annual rate of 531,000 in October to 441,000 in November, down 46% since November 2008. HIS Global Insight economist Patrick Newport pointed out that the drop in housing permits in November implies single-family starts are "likely to post double-digit declines in both December and January." Bernard Markstein, director of forecasting at the National Association of Home Builders, said it has "gotten so bad" there is "no point" in building. The homebuilders are urging president-elect Barack Obama to back an economic stimulus package that will increase incentives for homebuyers.