American housing slump persists

Official data revealed more bad news for America’s ailing housing market, yesterday. US housing starts and permits for future home construction both fell in April, as an overhang of homes on the market discouraged builders from taking on new projects, pointing to prolonged weakness in the housing sector. Housing starts fell 10.6 per cent, down to an annual rate of 523,000 units. Compared to April last year, residential construction was down 23.9 per cent, the largest decline since October 2009. Residential construction is being crowded out by an oversupply of used homes.