Carl leason

Housing Market in Desperation

What the conversation confirms to me is that builders are true egomainacs that think everything they build should sell immediately and that the subprime loans were a great idea, that the cost of land is the problem, etc.
In fact, most builders make a huge profit on the homes they build and got used to it during the 2001-2005 period, now that the inventory of unsold homes is gigantic, they are simply hoping that sales will start up again, but they don't seem to really have a grip on facts !
The fact is that inventory is at an all time high, that prices are still very high and interest rates are fine, it's just that many people got talked into adjustable rate loans and are now in default, and R.E. taxes have taken a big jump, which placed a huge crunch on affordability. Rentals are big business again because of the high price of homes, taxes and insurance, like those Hovnanian thinks we should all own. He conveniently forgets that even the guys who work for him, building homes can't afford the homes he builds. Not everyone can afford a $300,000-$500,000 homes guys !!! Ara , like all builders, need to get this dose of reality ! LC

Housing Market in Desperation

The "bottom" of the housing price decline will come when rentals are more expensive than buying.
Three to four years you couldn't find a tenant because of lower prices and just plain speculation, but now people are not buying because it's less expensive to rent ! Check it out,..Do the math !
Part of the problem is that in places like Fl R.E. taxes have skyrocketed and so has insurance, but in other states , GA, SC, etc. prices are much lower and sales have not declined as much. R.E. sales depends on the state and the area . Check out a condo in NYC ! Unless you have really big bucks, renting is the only option.
LC