Wesley Mouch

Residential Construction: Calling the Bottom

Good news, good news, good news indeed! The bottom is in on residential housing construction!

And if it holds, hiding our countries insolvency will be impossible. More supply is the last thing we need, and increasing it will move us farther down the price curve, dragging more existing homeowner's underwater. As a nation we cannot borrow what it will take to write-off the lender's losses on residential properties. Those homeowners that choose to stay in underwater properties will not be able to move to find what work is available, and will remain underemployed for the foreseeable future.

What economic signal are the builders not getting? Who is making these loans to the builders?