Housing Starts and Building Permits Drop to Record Low

As reported on CNNMoney.com - "Housing starts, permits at record lows":

Housing starts and permits, both of them key measurements of home construction, hit record lows in October, the Commerce Department reported Wednesday.

Housing starts reached an annual rate of 791,000 last month, the lowest level since the department began tracking starts in 1959. The rate tumbled 4.5% from the revised reading of 828,000 in September.

Building permits fell 12% to an annual rate of 708,000 in October, breaking the previous low of 709,000 in March 1975. The annual rate for September was revised to 805,000.

What was expected?

Building permits were expected to fall to an annual rate of 772,000 in October, according to a consensus of economist opinions from Briefing.com. An annual rate of 780,000 housing starts was expected for October.

Any of this beginning to sound like a broken record? As we suggested in last months housing starts and building permits report (Housing Starts / Building Permits Drop to Levels Not Seen Since January, 1991), the numbers remain atrocious but the bright spot remains that this trend will ultimately lead to shrinking inventory levels. Simple supply and demand. Lower inventory levels equal a happier housing market for everyone except buyers looking for a blockbuster deal. Until then, construction related jobs will remain under pressure.