Tuesday, July 19, 2011

U.S. Housing Starts Hit Five-Month High in June - Bloomberg

How nice!!!! More housing being built!! This makes a lot of sense because we only have about 5 years worth of excess inventory to work off in the real estate market. It may be just a sign of local area demand for new housing but it will only prolong the crisis by adding so many more homes. I would understand if these were homes that were custom built and already purchased but I was guess this is not the case. It is as if the local municipalities issuing the permits are set on pushing prices down further. We are in a major housing mess and everyone seems set on going back to business as usual regardless of what will be beneficial for the economy. Here is another question to consider? How are builders going to sell homes that will get appraised at the price they need to make a profit? Home prices have declined far more than material prices so it is not possible to build a home for 50% less than it was a few years ago but that is where the appraisals may settle. If there are major restrictions on appraisers after their role stoking the over heated real estate market, they likely won't be able to appraise the property for the builder soon be struggling themselves. If that is not the case then we all know just how badly the builders were ripping people off 4 and 5 years ago, doing so with the help of the banks and the appraisers. U.S. Housing Starts Hit Five-Month High in June - Bloomberg Make big money in penny stocks today

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