US homebuilding slump in February

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16 March 2011, last updated at 13: 35 GMT it was the second lowest level of the construction starts records more than 50 years ago began a month crashed 22.5% in February compared to earlier construction of new houses in the United States, new data shows.

Builders began work on new homes at a seasonally adjusted annualized rate of 479,000 in the month.

It is recorded in the depth of the last recession the second lowest level since records began more than 50 years ago just above the 477,000 in April 2009.

It was also well below the expected number of total 560,000 housing starts.

The figure was 20.8% compared to February 2010, according to the data from the US Commerce Department.

"Good News"

Influenced by the decline in activity, with in the Northeast and the Midwest with the brunt of any region.

Part of the drop was of January due to an upward revision to total 618,000 from previous estimate of 596,000.

The number of new building permits granted in February hit a record low 20.5% compared to the previous year from, or 3.3% compared to January on a seasonally adjusted basis.

"Good news for housing, begins this low level", said Bill McBride of risk calculated business blogs.

He thinks the housing market biggest problem of the large overhang of repossessed and other unsold real estate - a problem which would be aggravated by new construction only.

"I expect starts remain too low until more of excess stocks of existing real estate."

Demand for houses in the United States remains heavily printed not mortgages, with many would-be buyers found.

In the last few months, applications for mortgages have to buy properties back in the direction of the lows seen last summer - shortly after the end of a tax credit for homebuyers - according to data from the mortgage bankers' Association please.