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Housing

Housing Starts Crushed

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By Douglas A. McIntyre Updated Published
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“Privately-owned housing starts in October were at a seasonally adjusted annual rate of 519,000. This is 11.7% below the revised September estimate of 588,000 and is 1.9% below the October 2009 rate of 529,000,” according to the Commerce Department.

The data complements grim news from S&P yesterday that home prices could drop another 7% to 10% next year.

Although the data is mute about the extent of the problem, it remains concentrated in several states in which home prices are down 50%–California, Nevada, Michigan, Arizona, and Florida. It may take years to clear out this inventory which means housing starts may be near zero.

The foreclosure forecasts for the next two years have also gotten worse. The Fed’s Rivkin says that foreclosures will be over 2.5 million this year and in 2011 and will not drop appreciably in 2012.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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