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February Housing Contruction drops 5.9 percent
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The wild winter weather is being blamed for the recent new house construction decline.
The Commerce Department said Tuesday that construction of new homes and apartments fell 5.9 percent in February to a seasonally adjusted annual rate of 575,000 units, slightly higher than the 570,000 that economists were expecting. January activity was revised up to a pace of 622,000 units, the strongest showing in 14 months.
Single family construction dropped 0.6 percent, declining to 499,000 units. The Northeast dropped by 9.6 percent and the South declined by 15.5 percent. Construction rose by 10.6 percent in the Midwest and 7.9 percent in the West.
Building permits fell to an annuallized rate of 612,000 units after having fallen a larger 4.7 percent in January.
Sales of new homes plunged 11 percent to a record low in January, the third consecutive monthly decline. Sales of previously occupied homes were down 7 percent, the sharpest drop since last June.
With the upcoming flood of foreclosures about to hit the market many economists expect we could be in for a long road ahead for the housing market.
Staff Writer
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