Housing starts continue to fall with the decline in building permits following the same trend. This decline is needed to reduce the decline in pries and housing rates. The US economy is clearly in recession territory for the housing market and have fallen from a much higher level. We have moved right through the 2000 recession levels so we have to use 1990 as the comparative anchor. The pattern for housing is very much the same for most recessions, a steep decline and a slow rise so it is unlikely that home building will reverse any time soon. In fact, it took years to get back to the pre 1990 recession levels.
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