Bubble Done Burst

So much for the housing bubble.

Construction of new homes and apartments plunged by 14.3 percent in January, the Commerce Department reported Friday.

The bigger-than-expected drop left construction at a seasonally adjusted annual rate of 1.408 million units, the lowest level in nearly 10 years.

On Thursday, a real estate trade group reported that the slump in housing deepened in the final three months of last year. The National Association of Realtors said that sales of existing homes fell in 40 states and home prices dropped in 49 percent of the metropolitan areas surveyed, the widest price decline in the history of the Realtors’ survey.

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