Bigger falls are on the way as the pipeline of housing starts runs dry
The number of new homes being finished continues falling, with 237,479 homes completed over 11 months to the end of November 2010, down 34.5pc compared to the same period in 2009, according to the latest figures from the Government (Fomento).
With housing starts down to under 100,000 per year in 2010, from a high of over 800,000 in 2007, it’s a safe bet that construction completions will continue falling for at least the next year or so to below 100,000 p.a. in 2012.
That’s bad news for the construction industry but at least it will help clear the glut of new homes weighing down on the market.
98pc of homes finished in the latest period were built by private developers, whilst 2pc were social housing built by the government.