Housing Starts and Single Family Building Permits Down

by Lynn on November 20, 2009

Foreclosures and Short Sales Hammer Housing Starts

It doesn’t surprise me that housing starts and single family building permits are down. In the Daytona Beach real estate and Palm Coast real estate markets, short sales and foreclosures have forced prices below replacement value in many cases. What would anyone want to pay more for a new home when the price would be above similar homes on the market?

Dangerous for Builders

Builders are not building spec homes in most markets. It is certainly at a very low level in Palm Coast and Daytona Beach. Custom homes make more sense because they are being built for a buyer under contract.

I’ve been doing a lot of research over the past few weeks and it appears that the foreclosure wave will not be complete until 2011 when the last teaser rate loans need to be refinanced. It will probably take another year for those to work there way through the system. That’s when I see new home building picking up again.

There’s are very nice article at Mortgage News Daily that goes into a lot of detail and has some graphs that tell the story visually. Check out the article –> Housing Starts Fall. Single Family Building Permits On Hold.

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