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Housing starts down during April

Housing starts were down during April.

Housing starts were down during April.

According to the Commerce Department, the number of housing starts taking place during April were down 11 percent month-over-month.

A Bloomberg article reporting the decline attributes the weak month to the high number of disasters ravaging the lower half of the country, as massive tornadoes affected several states and harsh thunderstorms and flooding damaged others.

In all, construction reached an annual pace of 523,000 homes, which is less than March's pace of 569,000. Also, the rate of awarded building permits, which indicates future construction, was down during April.

In general, home construction has been hampered by the falling median price of homes, as well as the increased number of foreclosures. These available properties are more attractive to those seeking relocation, as they come at a cheaper price than constructing a new home.

"Job growth is essential to household formation and to keep home prices from falling further," Eric Green, chief market economist at New York-based TD Securities, told Bloomberg. "I don't see home sales doing much of anything" soon.

Currently, the national unemployment rate sits at 9 percent. However, a recent report discovered that payrolls and incomes have increased for five straight months, providing some signs of optimism.