Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Homebuilders still stink - so what? (So do Realtors...)

|Includes:Beazer Homes USA, Inc. (BZH), HOV, KBH, MHO, PHM, TOL

Please explain to me why the homebuilders order book getting schmeissed, as Doug Kass would say, is bad for the housing market? Seriously, it might be bad for employment if the construction industry flounders, but how can it be bad for real estate.

Our problem continuously seems to be supply - foreclosures, short sales, "shadow inventory" along with everyone who puts their home on the market in the spring. Why would slowing the creation of new supply hurt that market? Lets stop building and clean out soem of the inventory pipeline, no?

All I see in our area and those that I visit traveling is that the builders have lowered quality dramatically, crammed everything more closely together and continued to do crazy financing deals to get people into the new product. The larger, national builders have seemingly swung in the direction of car dealers where they say, "Maybe we can barely break even on the sale of the product, but now we'll make money on the financing." Not sure that's a good idea...

Also, with all of the terrible real estate stories we hear, why has nobody said a word about the realtors? How on earth do they continue to make 6% commission when they add no value? They had a good gig in the past where advertising your property correctly could move it more quickly and perhaps improve your price. Now, all they do is fall all over themselves to talk about the soft market and that things only sell if they are "priced correctly." (i.e. underpriced) IF you can't make any more money on the property based on their efforts, why do they scalp 6%? How many of you out there would continue to pay your advisor, broker, research associate, et al if all they did was lose you money with basically no minor indication (even from them) of an improved performance in the future? The realtors now risk turing the home market into the car market - why would I buy if all it does is lose value?

AARP should take Congressional lobbying notes from the NAR...