ntb

Housing Bubble and Real Estate Market Tracker

Housing values are based on supply and demand. The sticks and bricks cost are roughly constant with land value being the moving factor. Residential land value is set primarily by homebuilders. No homebuilder is buying land at this time and will not until things stabilize. Land values will continue to drop until homes can be delivered at an affordable price. Unfortunately the loose loan underwriting that was supposed to create greater homeownership caused land values to reach unstainable levels and now the entire country's residential land/housing is being repriced. The end result is that probably more people will loose their houses than were helped. The hangover and lingering effects on the economy will last several years.