Housing Starts Continue to Struggle

Builders continue to struggle in the current housing market as the large quantity of foreclosures and short sales significantly underprice newly constructed single-family homes. In July, “housing starts dropped by 1.5% to a seasonally adjusted annual rate of 604,000 homes.” Conversely, multi-family housing starts increased by 7.8% as rental demand rises. Bob Nielsen, chairman of the National Association of Home Builders explains, “Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements.” http://bit.ly/noQqpa

Share this article: