More Housing: The Best Is Yet To Come III
Excerpts From The Christian Science Monitor:
By last year, a median price American home cost nearly eight times average annual earnings, up from about five times earnings in 1980, according to research by New York investment firm Merrill Lynch (MER, news, msgs).
Now, fewer buyers can afford homes, and many speculators are trying to clear out of a cooling market.
The result is an excess supply of about 1.5 million units in a market where 8 million homes are sold in a good year, according to a new estimate by Goldman Sachs, another investment firm in New York.
That tally includes the stock of homes listed as being for sale, plus an adjustment for the high number of canceled purchase contracts for new homes. It also takes into account a sharp rise in the number of existing homes that are vacant.
The number of unoccupied homes for sale has reached a record 2.7% of all homes that are normally owner-occupied.
The upshot: Builders may need to cut the pace of construction even further, and prices for homes may face continued pressure.
Cut the pace of construction further? What will that do for the "new" economy?
Yeah, all those under the table $100K construction, real estate and loan types are going to work for... Wal Mart & Wendy's. Yeah, thats the ticket!
Better keep hoping that Goldilock's does show up, cause if she don't, Da Bears are going to start wrecking the house, in the sub prime basement, big time!
By last year, a median price American home cost nearly eight times average annual earnings, up from about five times earnings in 1980, according to research by New York investment firm Merrill Lynch (MER, news, msgs).
Now, fewer buyers can afford homes, and many speculators are trying to clear out of a cooling market.
The result is an excess supply of about 1.5 million units in a market where 8 million homes are sold in a good year, according to a new estimate by Goldman Sachs, another investment firm in New York.
That tally includes the stock of homes listed as being for sale, plus an adjustment for the high number of canceled purchase contracts for new homes. It also takes into account a sharp rise in the number of existing homes that are vacant.
The number of unoccupied homes for sale has reached a record 2.7% of all homes that are normally owner-occupied.
The upshot: Builders may need to cut the pace of construction even further, and prices for homes may face continued pressure.
Cut the pace of construction further? What will that do for the "new" economy?
Yeah, all those under the table $100K construction, real estate and loan types are going to work for... Wal Mart & Wendy's. Yeah, thats the ticket!
Better keep hoping that Goldilock's does show up, cause if she don't, Da Bears are going to start wrecking the house, in the sub prime basement, big time!
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