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Construction for new homes has hit a 17.5 year low and signals the worst housing slump since the Great Depression. According to a report released by the Commerce Department, new house construction dropped 6.2% to an adjusted annual rate of 895,000 new homes this year.

Even though those on Wall Street were expecting new home constructions to be closer to 950,000 this year, perhaps the slow down in home construction means the 11 month surplus of homes can diminish and some of the housing problems can be fixed.

It honestly seems more like a good thing than a bad one in this case. However, I believe that people won’t be buying a lot of the homes already on the market because it’s just getting too hard for people without perfect credit to get a home loan. Well…maybe that’s not an awful thing either.

Jeremy

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