Housing Quagmire Continues
Close to 4 million households have entered foreclosure since 2007. Foreclosures are at unbelievable levels.
Builders have reduced home construction to 60 year lows. This cutback is reducing inventory, the first step in restoring the balance between supply and demand in housing.
But demand remains extremely low; it’s as if builders saw two out of every three customers disappear.
The national homeownership rate has dropped to 67.3%, erasing all the gains since 2000.
The national median home price, adjusted for inflation, dropped by almost 30% from October 2005 to January 2009.
As of March, more than 14 million households owned homes that were worth less than their mortgages.
Private investors are shunning mortgage-backed securities. As of Q109, almost all mortgages were bought or guaranteed by federal agencies.
Builders have reduced home construction to 60 year lows. This cutback is reducing inventory, the first step in restoring the balance between supply and demand in housing.
But demand remains extremely low; it’s as if builders saw two out of every three customers disappear.
The national homeownership rate has dropped to 67.3%, erasing all the gains since 2000.
The national median home price, adjusted for inflation, dropped by almost 30% from October 2005 to January 2009.
As of March, more than 14 million households owned homes that were worth less than their mortgages.
Private investors are shunning mortgage-backed securities. As of Q109, almost all mortgages were bought or guaranteed by federal agencies.
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