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House Construction ‘Plummeted’ In April

From a feigning surprise Associated Press:

Construction of new homes plummeted in April

By Derek Kravitz, AP Real Estate Writer
May 17, 2011

WASHINGTON – Construction of new homes plummeted in April, another troubling sign for the battered housing market.

Builders broke ground on 10.6 percent fewer new homes last month from the previous month. The seasonally adjusted rate fell to 523,000 homes per year, the Commerce Department said Tuesday. That’s down nearly 25 percent from one year ago and less than half the 1.2 million homes per year that economists consider a sign of a healthy market.

And, lest we forget, last year was itself a terrible for new housing starts.

Tighter lending standards and high unemployment are weighing on the housing sector, which is in the midst of one of its worst years in history.

By citing "tighter lending standards," the AP probably means to side with the Obama administration’s renewed drive to give mortgages to people who will never pay them back.

(History might not repeat itself. But stupidity sure does.)

Builders are also struggling to compete with millions of foreclosures, which are forcing down prices for previously occupied homes…

Except that people aren’t buying previously built houses, either.

The weak housing market is weighing on the overall economic recovery. Each new home built creates an average of three jobs for a year and generates about $90,000 in taxes, according to the builders’ group.

Given that most houses today are built by illegal aliens, we very much doubt these tax revenues.

In past modern-day recessions, housing accounted for 15 to 20 percent of overall economic growth. In the first post-recession year, between 2009 and 2010, housing contributed just 4 percent to the economy.

Then maybe we haven’t really had a "post-recession year" yet.

On Monday the National Association of Home Builders said its survey of homebuilder sentiment was unchanged at 16. That’s the same level it has been for six of the past seven months. Any reading below 50 indicates negative sentiment about the market. The index hasn’t been above that level since April 2006.

And when asked about where they see sales of single-family home heading over the next six months, the builders surveyed offered their most pessimistic outlook since September.

But Obama killed Osama?

This article was posted by Steve on Tuesday, May 17th, 2011. Comments are currently closed.

14 Responses to “House Construction ‘Plummeted’ In April”

  1. River0 says:

    Of course! Everybody with brains is scared about what’s happening to our economy, and the war being waged on it by Washington D.C. Nobody is safe.

    • Not so fast says:

      And the War in Washington DC is the REAL war! The war in Iraq and Afghanistan and “Libya” are just skirmishes!

    • GetBackJack says:

      NSF – amen, amigo. AMEN. The real war has been in Washington DC since Lincoln, and the real enemy IS the federal establishment and the wealthy scion Northeastern political families who control the District.

  2. tranquil.night says:

    MUSICBREAK: This dedication goes out to Spike from the Bitter Clingers in the South. Where’s FEMA, you ask? Ah, who cares? Wildfires, tornadoes, floods and a budget/economy drowning in debt have nothing on the O-2012 WTF Campaign to Finish/Keep the Change!

    Water, gray –
    Through the windows, up the stairs.
    Chilling rain –
    Like an ocean everywhere.

    Hope decays,
    Generations disappear;
    Washed away,
    As a nation simply stares.

    Don’t want to reach for me, do you?
    I mean nothing to you,
    The little things give you away.
    And now there will be no mistaking –
    The levees are breaking.

    All you’ve ever wanted was someone to truly look up to you,
    And six feet under water – I do.

    The little things give you away..

    – Linkin Park

    • proreason says:

      There’s a guy who posts occasionally on PJM who has a great theory about Spike. Essentially, he says that Spike lives in a virtual world of his own making. He’s unaffected by reality, isn’t even aware of it for the most part. If he can’t control a person or group of people, they cease to exist for him: he simply ignores them.

      Spike can’t control the Red States. They don’t exist in his virtual world.

      The other interesting thing about the theory is that he says Spike never actually does anything; he only talks. So, has never writeen any legislation or even suggested any. He never writes anything. He doesn’t make any plans. He doesn’t take any positions. Everything is done by other people. Spike then incorporates the legislation/plan/documents into his virtual world and talks about them. If at any point they don’t work out to his favor, he ejects them from his virtual world.

    • tranquil.night says:

      Yes, to borrow the latest analogy from the tortured soul Stephen Hawking, he’s a computer operating on his own software, incompatible with the broader network of the Universe of Truth – Reality. Liberalism is it’s own all-consuming and self-imploding Twilight Zone nightmare.

      Morons. How can you compare the human brain to a computer and then deny the existence of a Programmer with intelligent design? Simple, because they don’t want to be subordinate and they don’t want to admit they’re selfish, so they rebel against creation in an attempt to prove themselves more powerful than the Creator. And to tell themselves they are more benevolent – for they blame God for human suffering and believe they can personally remove pain from the equation of life.

      It shouldn’t be any wonder why Liberals almost always look for emotional medication, be it sex, drugs, social peer groups, etc, with increasing extremism over time as it grows into an addiction. Physical substance may supplant faith, but it will never emulate its results.

    • Not so fast says:

      Barack Hussein Obama is a total tool of the Left. He’s totally incapable of doing ALL of this damage by himself. He’s truly the ultimate Manchurian Candidate. This guy is the most obvious front man President in American History. He actually does not even think of himself on the legacy historians will write about his Presidency. A first for me in my memory. Never has a politician become a joke so fast ever, I believe.

    • Right of the People says:

      I think it’s about time we (re)boot Spike. Someone needs to inject a virus into his perfect, virtual world.

  3. GetBackJack says:

    Construction of new homes plummeted in April

    Gee, could this have anything to do with a MIND BOGGLING GIGANTIC oversupply of inventory, empty, sitting there?

    Map – http://www.ritholtz.com/blog/2010/12/google-map-foreclosures/

    Click through, click into states and cities and be staggered by what Chris Dodd, Shumer and the rest of the Democrat Machine hath wrought.

  4. Petronius says:

    The housing crash is getting worse.

    Housing starts are at the lowest level since WWII.

    Home prices fell 8% from this time last year, fell 3% in the first quarter 2011, and are falling at the rate of 1% per month.

    Real estate information company Zillow predicts a further 8% decline this year and that house prices will not bottom until 2012.

    Over 16 million families –– 28% of homeowners –– are underwater on their mortgages nationwide. Most of these people will never recover.

    The Fed’s low interest rates are keeping real estate prices higher than they would be otherwise. This cannot last.

    • Liberals Demise says:

      Fannie / Freddie lost $8.5 Billion in the first Quarter of this year.
      New Housing starts? Who’s buying?

  5. Rusty Shackleford says:

    It’s quite simple.

    Rather than have all the news articles about the symptoms, it’s much easier to just identify the disease.

    “Housing used to be fine and a guaranteed investment. Then the government got involved and killed it”

    The article would then explain the movements by such ticks as Dodd and Kennedy and how market extortion brought forth a new kind of “homeowner” and how the smallest blip in the economy would destroy a very fragile, and essentially a very poor way of doing business.

    Little more is needed than that. Slowly, the American electorate is catching on. Some of them may still be in their homes bought with an A.R.M. or sub-prime mortgage but were able to slowly move up in income to keep the payments up.

    The biggest problem I see is a home that sold for $150,000 five years ago, is now worth $90,000 and the owner cannot get re-financed or is just stuck. Of course, taxes on said property don’t go down so they have that going for them as well. (sarc)

    Then, not satisfied to have wrecked havoc on that market, the socialists then tried their hand at cars and controlling that market. The test program didn’t go so well as people quickly saw something not right there. With the investors in GM and Chrysler being told to GTFO and take nothing for their money, it raised the eyebrows of those in the middle class who are aware of such things. The poor and those on government welfare couldn’t care because that’s money that operates way above their radar or ability to even see with their own eyes.

    Everything this “administration” has done is to destroy that unique segment of the population in this country known as the middle class. Being where it is in the bell curve, the middle class is self-sufficient to the point where it doesn’t like government intervention. A false middle class was created by giving home loans to losers. Thus, the damage was created when thousands of neighborhoods were populated by people who had no idea what responsibility is. I watched as a neighborhood that was barely ten years old decay at light-speed into an urban cesspool. Dope dealers, wrecked cars, junk-in-the-yard kind of neighborhoods where the houses still had their original paint and mailbox.

    Whoever thought that was a good idea was in a world of make-believe. They failed to understand that the American dream of home ownership isn’t something doled out by bureaucrats, but the reason it’s a dream is that it’s a worthy goal to strive for and once attained, people tend to take care of that which they have worked so hard to get. When it’s given and/or easily acquired, it is not cared for and destroyed quickly. Human nature.

    Then comes the question of “to what end” the socialists were hoping to gain something by handing out home loans. Your guess is as good as mine. Gratitude from the loser-section of the bleachers in the form of voters? That seems to be a fool’s errand as those people don’t really come out in droves to vote. In fact, they couldn’t care less, really. They truly are the drooling mouth-breathers who are not engaged in politics and are beyond unaware of what consequences an election can hold. Or, if they do make it to the polls, they vote for the “big shiny”.

    Have you ever watched an idiot try to act intelligent? It’s really quite amusing. Using words that don’t exist, espousing events that are inaccurate, donning facial expressions they saw on TV. It’s difficult to not want to smack them. But when they start talking politics and citing “issues” then you know just how stupid they are. And if they’re your next-door-neighbor, it’s doubly maddening. It’s also frustrating because you know their level of understanding is, at best, at the tide-pool level and the depth of their comprehension is lower than that of a smart dog. Carrot-stick immediately comes to mind and the democrat/socialists play this to the hilt.

    Not to defeat my own argument, but it’s no wonder that the socialists anticipate gratuitous votes from the drooling mouth-breathers but I still say they’re too otherwise-occupied with X-Boxes and illegally downloading their favorite tunes to care to get to the polls. Which, I guess, is a good thing, really.

  6. Right of the People says:

    “When it’s given and/or easily acquired, it is not cared for and destroyed quickly. Human nature.”


    Spot on. It’s like a spoiled child whose been handed everything for their entire, miserable lives and don’t appreciate a darned thing. Nobody makes their kids work for stuff any more, particularly the schools where they hand out passing grades just for showing up so they don’t damage the poor little fragile darling’s self-esteem. Nobody appreciates success until they’ve had failure and by not letting our kids try and fail we as a society are doing them an injustice.

    If you’re not afraid to fail, you will eventually succeed but you will never truly succeed if you are afraid to fail.

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