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New Home Construction Down in September
Last month, new home construction fell at a greater rate than expected. Numbers now suggest that there will be
fewer homes built in the year than the last sixty. Some experts are suggesting that once more builders go
out of business, the housing market will begin to recover. Increasing economic stress and the fact that
construction loans are becoming harder to obtain are contributing factors.
Construction was being projected at approximately 1 1/2 percent in September, however, there was more than a
six percent decrease in new home construction. This is the lowest level since 1991. In the West, we saw construction
drop more than fifteen percent. The Midwest saw a gain due to construction of new apartments. In addition, building
permit applications also took a nosedive last month falling more than eight percent, dropping to its lowest numbers
since the early eighties.
The recent seven hundred billion dollar bailout has come to light in order to prevent further economic downturn and a possible recession. Along with the
mortgage crisis, where millions of homeowners are defaulting on their loans, there are banks going under, or they are unable to
loan money and are tightening their lending standards. President Bush says that it will take time for the rescue plan to
work, but remains optimistic about its ability to do so.
Marin Real Estate Blog
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