US housing nightmare worsens as starts tumble 10.2 percent

0 Comments | AFP, October, 2007

WASHINGTON (AFP) — The bleak US housing picture became even grimmer as US housing starts sank 10.2 percent in September to a 14-year low, government data showed Wednesday.

The report showed the pace of new home construction at an annualized rate of 1.191 million units, weaker than the average forecast of 1.300 million, the lowest since July 1993.

The Commerce Department also revised lower its report for August to show a rate of 1.327 million units from an earlier estimate of 1.331 million.

The September report showed building permits, a sign of future construction activity, fell 7.3 percent to a weaker-than-expected annual pace of 1.226 million.

The figures highlight the horrific slump in US real estate after a sizzling market turned suddenly cold...