Types Of Bankruptcy

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January 16th, 2008

New Home Construction Tumbles In 2007

“This is a precondition for recovery as it will eventually reduce the inventory overhang. But there is a long way to go.”

The prolonged slump in housing pushed construction of new homes in 2007 down by the largest amount in 27 years with the expectation that the downturn has further to go.

The Commerce Department reported Thursday that construction was started on 1.353 million new homes and apartments last year, down 24.8 percent from 2006. It was the second biggest annual decline on record, exceeded only by a 26 percent plunge in 1980, a period when the Federal Reserve was pushing interest rates to post-World War II records in an effort to combat an entrenched inflation problem. Read more



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