Housing starts fell a 10.6% in October, the Commerce Department reports.
New construction on housing units dropped to a seasonally adjusted annual rate of 529,000, the lowest level since April. The 10.6% drop was the biggest percentage decline for starts since January.
Both single-family homes and multifamily units declined last month.
Builders in part may have been reluctant to start projects close to the expected November 30th expiration of the housing tax credit.
The credit has subsequently been extended by Congress until the end of next April. However, multi-family starts were way down, and they have not been fully part of the credit program.
Starts of single-family homes fell 6.8% on the month to a 476,000 rate, while starts of multifamily units dropped 34.6% to 53,000.
In the past year, starts are down 30.7%. Starts of single-family homes are off 10.9%, while starts of apartments and condos have plunged 78.1%.
Building permits for single-family homes were off 0.2% to a 451,000 rate.
Permits for apartments and condos was down 17.9% to 101,000.
Housing will pick up again for a short time because of the extension. It takes at least 3 months to permit and build a house and close the loan. So watch for numbers to fall again around late Feb, early March, as the builders and buyers finally realize they will not make the cutoff, though they will try with all their might.
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