Posted: Apr 23, 08 1:42pm

The March Housing Starts report just came out showing a much larger than expected decline in starts of new homes. The nearly 12% drop in starts of new homes pushes them to their lowest level in 17 years. This may be a strong indication that the nationwide housing sector has not bottomed yet. It is actually good news for mortgage rates.

In contrast, many Colorado resort towns are seeing brisk activity in starts for both single family and condo units. This leads us to believe that a possible overbuilding in certain Resort markets could put downward pressure on the double digit appreciations many resort towns posted last year. It’s all about the cycles.