New Home Builds Fall 5% Due to Severe Drop in Condo Market

Pessimism is back among usually optimistic homebuilders. The Commerce Department reported yesterday that construction of new homes and apartments declined 5 percent in June. The drop was a result of a 20 percent plunge in the condominium and apartment market. Single-family home construction fell 0.7 percent. Builders are being forced to compete against a glut of foreclosed homes. On the bright side, there was a 2.1 percent increase in building permit applications, indicating a somewhat positive outlook regarding the future.