Lower Housing Starts, Permits Signal Further Slump

Chicago Tribune (03/19/08)
The U.S. Commerce Department reports that builders broke ground on homes at an annual rate of 1.065 million units during February, a 0.6-percent decline from the previous month. Geographically, the Northeast was the only region to show a decline in total housing starts, at 28 percent; while the Midwest held steady. Starts climbed 5.1 percent in the West—the only region where construction of single-family homes rose—while total building activity rose 3.9 percent in the South. Lehman Brothers Holdings Inc. economist Michelle Meyer states, "You're seeing a continued correction in the housing market, where there's still a huge overhang of homes in the market for sale and very weak demand. Demand will continue to stay weak and home building will remain weak."