Housing starts declined 6 per cent in June to a seasonably adjus
Housing starts declined 6 per cent in June to a seasonably adjusits, according to Commerce Department figures released yesterday.
Combined with a continuing downturn in sales of new homes in recent months and a total production peak in February, the statistics are being interpreted by housing professionals as evidence that the national housing boom could be ending.
(Goverment economists indicated concern over the 5.7 per cent declinein single-family housing starts, although they cautioned that it normally takes three months to establish an underlying trend, Associated Press reported.)
However, on the positive side, the federal housing statistics showed that the rate of housing starts in June was 23 per cent above the level of 1.49 million units in June 1976, when the housing boom started.
In the Washington area, starts totaled 8,663 for the first five months of this year, up sharply over the total of 6,561 units in that period last year. However, almost half of the area production now is in Fairfax County, where there is now some fear of over-building later this year. However, total housing starts in this area in the last two years have been below the average of the previous ten years.