Economy/Credit/Housing Issues Ping List
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Does a builder not need a building permit to start construction? If so, how can starts be up if permits are down? Are some builders building without permits?
Why is it Hydroshock always post doom and gloom stories?
These home builders need to get off their duffs and offer rebates, incentives, discounts for customers from Ford, Dodge, GMC, HomeDepot, Lowe's to get that inventory flying out the doors.
Instead of gramppapa's way of selling houses...sheesh!
Sounds odd. Starts up, permits down??
WTF?
Fannie and Freddie today reported they are essentially insolvent. Check their stock prices out. OH SORRY FOLKS, I accidentally let some gloom drip out of the corner of my mouth, dammit. We all know there’s no mortgage problems, don’t we?
From another article:
http://biz.yahoo.com/ap/071120/economy.html?.v=10
“all of the strength came in the volatile apartment sector, which jumped by 44.4 percent. Construction of single-family homes fell for a seventh straight month, declining by 7.3 percent in October compared to September.”
Somebody is betting all the folks that lose there homes are going to want to find a place to rent.
Probably a good bet.
In a related report/survey of the NAHB, only 1 out of 5 homebuilders are optimistic about the near term for homebuilding.
That means that 80% are probably looking to pull in their horns, especially the big mass builders of spec homes, and those who can will focus on custom homes for folks with committed loans.
Those who followed that prescription in 1978-80 have been clipping their 20% bond coupons for the past 27 years.
Rinse and repeat. The next opportunity is close at hand.