The Government started recording the number of new homes being built back in 1960 and in April of 2009 Permits for new homes have reached the lowest ever recorded.
Overall new starts are down 50 percent after a 12 percent drop just in April.
In most areas a permit will expire after a year if the builder does not show continuous progress towards completing the home or building. In the last year home sales of available inventory stagnated. Most home owners that needed to sell had to cut prices and provide creative incentives simply to attract buyers who often backed out on deals because they could not arrange loans.
This is not to say home sales and even new homes are not being sold it just means that you have to have the money to be able to spend the money.
Larger down payments, financial background checks and the ability to show you are a good risk will get you a loan but maybe not from your favorite lender and possibly at a rate that is higher then you would expect.
In Southern California builders that can not complete projects have begun to bulldoze half built homes and turn lots over to adjacent home owners for as little as a dollar just so they can get away from dead projects.
The fact is overbuilding and loans given to 1.2 million people under Federal Programs were the cause of the problem we are now in.
No documentation loans were given to people who could never repay and along with that incentive such as first time buyer down payments and tax write-offs have put all of America at risk.
The problem will continue for at least a few years but unemployment and higher prices for goods will make it last longer.