US housing recovery suffers setback
The small green shoots of recovery seen in the USA real estate market in recent months appear to have been nipped in the bud by an unexpected fall in new home construction.
Figures published for October reveal new home construction dropped over ten and a half per cent into a yearly rate of 529,000 homes, covering both houses and apartments, making it the lowest level for six months,
Analysts studying USA real state are disappointed with the news as many felt the country was edging towards recovery. Concern is also being felt after information reports the consumer price index shows an increase of 0.3% fuelled by higher energy prices.
One expert felt the drop in construction may have been caused by the end of the tax credit incentive, originally due to cease at the end of this month.