Contradicting the bottom

From the New York Times:

Home Construction Dropped in January

Home builders, grappling with a slump in demand, slowed construction on new homes in January to the lowest level in almost a decade.

The Commerce Department reported Friday that its seasonally adjusted annual rate of new construction fell 14.3 percent from December and 37.8 percent from a year earlier.

The number of building permits issued last month also dropped, signaling that the months ahead could be equally bleak in the residential construction business.

The new construction data contradicted the notion among some builders and economists that the housing market has recently shown signs of bottoming out.

“You can’t blame this one entirely on the weather,” said Richard F. Moody, chief economist of Mission Residential, a real estate investment firm. “We continue to maintain the worst is not over for housing.”

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