It’s probably a healthy sign that starts on construction of homes fell 7.8% in March, as the Census Bureau reported today.
It’s healthy because the pace of construction was getting way ahead of the pace of buying. Now construction is getting closer in line with the general slowdown in sales.
Construction starts also fell by 7.8% in February. But they rose so much in January (16%) because of exceptionally warm weather that month that the first quarter as a whole still set a record.
BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.