Friday, May 17, 2002
Housing takes hit in April
By Jeannine Aversa
The Associated Press
WASHINGTON Home builders broke ground in April on the smallest number of projects in six months, a sign that the housing market is slowing a bit.
The Commerce Department reported Thursday that housing construction fell 5.4 percent last month to a seasonally adjusted annual rate of 1.56 million units. That was the lowest level since October. In the Midwest, housing starts plummeted 19.5 percent to a rate of 276,000.
It marked the second straight month that housing construction fell. In March, new housing projects dropped by 8.1 percent.
We got through the recession in exceptionally good condition. That means you don't have a bunch of pent-up demand to bring back on, said David Seiders, chief economist at the National Association of Home Builders.
With the mild winter weather, Mr. Seiders said, builders essentially moved up production to January and February from the normal spring start. Now, we're seeing the payback.
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