New Housing Construction and New Housing Starts - Economic Outlook

It should come as no surprise that the housingalready existing unsold housing markets, there is
construction sector is in the tank right now. Yet,virtually no one in the market for a new home at all.
another tank, The Online Think Tank, estimates that itTop that off with the problem of increased loan
will be well into 2010 until things return to normal.application scrutiny, high down payment requirements
Currently, housing construction is at a 14-year low. Newand credit score demands of homebuyers by lenders,
Housing starts are about as low as they have everand you can see where all this is going; not up! With
been seen when you compare the new homes beingresidential real estate tanked, the banking industry
built against the total number of homes.under the gun, construction down, well, what else could
Can things get any worse? Well it just so happensgo wrong? How about the spill over effect into the
that the answer is yes, but do recall that 14-years agosmall business sector, service sector, new autos and
it was 1995, which was a pretty dismal year in theretail sector. Yes, all affected too, and their outlooks
housing sector and interest rates were very high toare not much brighter either.
boot. With more and more foreclosures hitting the