Posted on 11/14/2009 8:38:55 AM PST by TigerLikesRooster
There are still too many houses
House prices have pulled out of their free fall, but don't expect them to recover until we work through a huge property glut.
By Colin Barr, senior writer
Last Updated: November 11, 2009: 9:08 AM ET NEW YORK (Fortune) -- The lights are on in the housing market. But at more and more places, nobody's home.
House prices have risen in recent months after a long plunge, according to the National Association of Realtors and the S&P Case-Shiller national index. Fewer Americans owe more than their property is worth, according to a report this week from Zillow.com.
But a full-fledged housing recovery will remain elusive until the market can absorb all the houses and apartments that were built during the housing boom. And on that front, progress has been slow.
About one in seven housing units was vacant in the third quarter, according to the Census Department. This year has registered the highest reading since the government began collecting such data in 1965.
(Excerpt) Read more at money.cnn.com ...
Ping!
Housing prices are still too high for the majority of Americans. I don’t see a problem here.
More “free fall” is in order.
the illegals also slapped together a lot of homes. They are built like sh*t with Chinese drywall and other garbage. The homes are falling apart.
I had to fly to Miami a few weeks ago to attend a business meeting on South Beach. This was ground zero for the condo boom and they are still building crap. The place is horrible because it is as crowded as Manhattan. Tonwhouses and condos shoe horned into any piece of land they can find.
There is no such thing as too many houses, or too few buyers.
Adam Smith's Invisible Hand will take care of this with free market forces.
What the author means to say is that the prices requested by the seller is too high given the supply available.
Better put is that your house is only worth what the next person is willing to pay for it.
I don’t see how the housing market EVER recovers in the next 20 years in regards to building.
I hear people say it’s 2 or 3 years. I don’t see it, at all.
Better put is that your house is only worth what the next person is willing to pay for it.
I’m glad I’m in the house that I want to spend the rest of my life in, I just hope I can keep it with all of this currency mess we’re currently going through.
I do. It's called a massive influx of "legalized" illegal immigrants.
Make no mistake about it -- this was exactly what the 2007 Federal immigration reform was all about. It's no accident that the real estate market began to unravel so soon after that bill failed to pass in Congress.
Technically the building inspectors are responsible for what you said. Like with Andrew it was not found out until it was too late. The building inspectors in Florida are a corrupt bunch.
That's how people traditionally veiwed their houses. It got perverted into an investment not a house.
I propose to legalize all illegals....after the invasion of Mexico.
Sure there are, just like there were too many hula hoops. At a certain point production can exceed the ability of the market to absorb the product at any reasonable price.
Sure, there is a market clearing price = prospective land value - cost of clearing the junk + scrap value of the removed junk - risk premium on the residual.
I am not sure that THAT market clearing price is the price that anyone including yourself is presently contemplating. Even if you were to give houses away there is a limit because even free is not free - property taxes + maintenance costs + transportation costs of even getting to the place.
This is what I hear from the "compassionate" MSM all the time. But the home-ownership reached 69% before the crisis, and stayed at about 65% for decades.
By what measure is 65% not a majority?
It just shows how nonsensiscal, populist phrases penetrated our speech.
By the measure that the homeownership percentage was achieved through bad loans, 0 down 1% interest rates that were frankly not sustainable and that lead stupid people into a false sense of comfort.
Then of course theirs our consumption addicted attitudes that have us living way beyond our means.
Plus you also obvioussly misunderstood my statement which did not refer to present ownership, but was directed towards individuals without homes looking at getting innto new homes. Which is based on median income vs. average housing prices.
More “free fall” is in order.
You are right, and about 5% of americans understand this.
You now claim it is unsustainable, which is also false: something existing for DECADES is prima facie SUSTAINABLE.
Just think a little more before you hit the Post button.
Reading comprehension is obviously not your strong suit...
But CAPLOCK obviously is...
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