Despite talk of stability and glimmers of recovery, the construction industry and home builders appear to be a long way from a rebound.
New home construction fell to its lowest pace on record in April, the government reported on Tuesday, disappointing forecasters, who had hoped for a modest increase. Building permits fell to record lows and construction on new multifamily units plunged.
Housing starts were down 12.8 percent last month from March, to an annual pace of 458,000.
The results showed that the housing market remained weak, even as home builders reported that they were regaining some confidence and as prices began to fall at a slightly slower pace.
“There’s just simply too much supply on the market, and construction starts will have to continue to contract,†said Joseph Brusuelas, director at Moody’s Economy.com.
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