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Housing Starts Fell To All Time Low

By Judi Desiderio, Tuesday, May 19, 2009
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A seasonally adjusted 458,000 units or 12.8% decline of Housing Starts has everyone looking at US Housing Markets again. This # is the lowest since January 1959 when Housing Starts were first monitored. Additionally, Building Permits– which preclude Housing Starts– also fell to a record low 494,000 units, down 3.3% from March. This to me is no surprise, in fact, I’m baffled why the media looks at it as a negative indicator… THIS IS GOOD NEWS!!!!

It communicates that all the right checks and balances are in place in the construction industry. It would be worrisome if they continued to build while the demand had been curtailed!

Now, all we need is for the powers that be to recognize that even at the current great interest rates,, we cannot move forward until they loosen lending regulations. The next market cycle will begin when a lending balance is in place.

When we do progress to the next cycle those forward-thinking contrarians will be rewarded in all businesses.