August Homebuilding: fewest homes in 12 years

September 19, 2007
August Homebuilding: fewest homes in 12 years

Home builders in August began construction on the fewest homes in 12 years, the Commerce Department reported Wednesday.

The 2.6% decline, to a lower-than-forecast annual rate of 1.331 million, followed July's 1.367 million. Building permits dropped 5.9%, to a 1.307 million pace, also the lowest since 1995.

"We don't expect sales to bottom out until late this year, and prices will likely moderate even further," says John Silvia, chief economist at Wachovia.