DCM

Anti-Foreclosure Measures and Lenders Rights - Housing Tracker

@ArnoldCountry
I basically agree with your premise and conclusion. However, it should be pointed out that credit underwriting standards have reverted back to having "good" credit to qualify. The percentage of people who have good credit is disturbingly low. It is hard to imagine where the buyers are going to come from to buy the existing housing available, regardless of price.

What troubles me is that builders keep building (at least in my area) which adds to our 4 year supply of homes for sale. Construction materials and labor costs have not significantly declined. Therefore, new construction per square foot costs are about the same which by rough calculation is $50 to $75 per square foot higher than our existing house's asking price! I assume that bulders are not going to build and then turnaround and sell for a loss. So, the question is how can builders continue to get construction loans or better yet, what kind of idiot lender would lend money with little hope of ever getting paid in this lifetime? In any case, it is insanity to add more housing to an already multi-year oversupply of houses on the market.

Recovery? Bottom? I will believe we are on the road to a housing recovery when there is a total stop to building new homes. Yes, if construction does stop, it will be hard on the economy - many jobless and the building material industry will be rocked to the core. But someone, please give me an alternative solution because increasing the housing supply can't be the answer.