New home construction lowest in 12 years

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September 20, 2007

New home construction lowest in 12 years

New home construction numbers are out for August. Or course, housing starts, completions and permits are down from a year earlier. They say it's the poorest performance since 1995. Here's the actual report from the U.S. Department of Commerce.

Negative headlines notwithstanding, this is actually good news for the overall housing market. Florida builders overbuilt from 2004 to 2006 based on speculative purchases by investors. Supply and demand are out of whack.

Investors went away. Builders needn't build as much. It's that simple.

Posted by James Thorner at 4:30:00 AM on September 20, 2007
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About This Blog

(Un)Real Estate offers a peek at the housing market usually reserved for insiders. While it focuses on the Tampa Bay area, it won't neglect dipping into the rest of Florida and beyond. Its goal? Simple: To help you keep a roof over your head without losing your shirt.

Times business reporter James Thorner has covered the Tampa Bay area housing market since 1999 and writes a weekly column on the topic in the St. Petersburg Times. Having recently bought and sold a house here, Thorner has shown his insights are more than theory. He's got the burn marks to prove it.

E-mail James Thorner: jthorner@sptimes.com.