U.S. Housing Starts in 2009 were Lackluster

 

A psychological factor is beginning to come into play. For the first time since March 2006 (45 months, or nearly four years ago), total housing starts in the nation were positive (+0.2 percent) on a year-over-year percentage basis.

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Most of the reason for the lackluster performance of starts in the latest month is being blamed on early winter storms. Another factor was uncertainty about whether or not the $8,000 first time homebuyer tax credit would be extended. It was, through April of this year, and that will provide an incentive for starts and buyer participation through the first third of 2010.

Also acting to inhibit starts has been the delay in the recovery of employment levels. More jobs were lost again in the U.S. economy in December, after a brief uptick in November. Also, ongoing family budgetary problems are endangering prime rate mortgages. This continues to throw additional existing residential properties on the market, negating the need for new homes. ?EUR??,,????'?????<