Housing starts in the United States are expected to fall to record low levels in 2009, according to recent news. At the International Builders Show being held in Las Vegas, the National Association of Home Builders (NAHB) predicted that single family housing starts will drop to about 441,000 for 2009. That is the lowest number on record, and nearly 75 percent below the record high of 1.7 million homes that were begun in 2005.
The NAHB’s Chief Economist, David Crowe, also predicted that housing sales will continue to fall in 2009, by as much as 14 percent. The most recent sales figure shows that in November, 2008, new home sales fell 2.9 percent, the slowest pace since January, 1991.
The main problem at the moment is that there are far too many completed units for sale – an estimated 6,239,000. On top of that is the high rate of foreclosure, adding to the number of empty homes available. Crowe notes that builders are trying everything possible to move their homes: “Virtually all builders are doing something extra to sell more inventories.”
He did indicate that the market should emerge from 2009 with an upswing that will be driven by low prices and increasing demand.
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