Seeking Alpha

May Housing Starts: +3.5% to 560K vs. 547K expected and 541K (revised from 523K) last month....

May Housing Starts: +3.5% to 560K vs. 547K expected and 541K (revised from 523K) last month. Permits +8.7% to 612K vs. 563K (revised from 551K) last month.
Comments (10)
  • J 457
    , contributor
    Comments (951) | Send Message
     
    Dear homebuilders, we don't need another 560k new homes built this year, we already have several million sitting as REO. Please take long vacation until 2015. And don't expect anymore billion dollar taxpayer hand-outs like you received in 2010.
    16 Jun 2011, 08:55 AM Reply Like
  • Windsun33
    , contributor
    Comments (4275) | Send Message
     
    That was rather unexpected. Perhaps they are building new homes because the government - fed and local - have succeeded in delaying the foreclosed and shadow market homes from reaching the market for so long that we in the situation where there are millions of empty and/or defaulted homes that cannot be sold.
    16 Jun 2011, 08:58 AM Reply Like
  • bbro
    , contributor
    Comments (9600) | Send Message
     
    These new homes probably not being built in zip codes like 89031....
    16 Jun 2011, 09:19 AM Reply Like
  • bbro
    , contributor
    Comments (9600) | Send Message
     
    Actually in zip code 89031 there are 31 new construction homes for
    sale versus 2655 foreclosed homes for sale...
    16 Jun 2011, 09:24 AM Reply Like
  • Windsun33
    , contributor
    Comments (4275) | Send Message
     
    Where do you find that info by ZIP code?
    16 Jun 2011, 09:39 AM Reply Like
  • OptionManiac
    , contributor
    Comments (3324) | Send Message
     
    Still building in Nevada? Maybe on land already purchased, who knows. Googled the zip, bbro, first thing to pop up: 9 registered sex offenders living in 89031. Another big reason to build there.
    16 Jun 2011, 09:40 AM Reply Like
  • J 457
    , contributor
    Comments (951) | Send Message
     
    The builders need to slowly burn thru their land at a loss to take advantage of the tax breaks. More losses = bigger deduction.
    16 Jun 2011, 10:09 AM Reply Like
  • Windsun33
    , contributor
    Comments (4275) | Send Message
     
    Yah, that makes sense - lose $10 million for a $1 million writeoff.
    16 Jun 2011, 10:30 AM Reply Like
  • J 457
    , contributor
    Comments (951) | Send Message
     
    Good try, but that's not quite how it works for them. DHI 800MM, not bad?
    16 Jun 2011, 04:27 PM Reply Like
  • jwbrewer
    , contributor
    Comments (317) | Send Message
     
    These are not houses that are being built, but apartment complexes and condos. I suppose that they are needed for when people are foreclosed on or when they decide to just walk away from their house payment.
    16 Jun 2011, 10:33 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|