Friday, 22 May 2009
Housing Permits Downward Trend Continues
As no surprise the number of building permit granted for residential contruction has deteriorated further to reach a very sharp decline of about - 40% year on year.
It consolidates futher the assumption that residential market prices have started their correction in a typical 2 to 3 years bear market (at best) and implies that this is simply not a temporary correction as witnessed in 2003.
You will notice, as well, the slump from beginning of this year of permit granted for commercial and office buidings, a further sign of an abrupt end of a once overheated construction industry in a currently declining economic environment.