Annual rate of construction falls 10.6% in October in a drop that surprises economists.
By Les Christie, CNNMoney.com
November 18, 2009: 10:09 AM ET
NEW YORK (CNNMoney.com) — Home builders initiated construction of far fewer new homes in October than the month before, a big and unexpected drop for the struggling industry, according to a government report issued Wednesday.
Homebuilders began construction at an annual rate of 529,000 new homes during the month, 10.6% below the revised September rate of 592,000 and 30.7% below the 763,000 rate during October 2008. It was the lowest level of housing starts since April, when the annual rate was 479,000.
A panel of industry observers compiled by Briefing.com had forecast housing starts of 600,000 during the month. It was the second month in a row of dashed housing start expectations.
"The numbers stink," said real estate analyst Mike Larson of Weiss Research. "They’re negative across the board."
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