Tuesday, June 10, 2014

Review of new build houses for sale::Can a First Time Homebuyer Sale Their Home in the First ...







Review of new build houses for sale::Can a First Time Homebuyer Sale Their Home in the First ...








               COMMENTARY               |               New               home               sales               numbered               328,000               for               the               month               of               March,               according               to               the               recent               HUD               report               (U.S.

Department               of               Housing               and               Urban               Development).

This               is               7.1               percent               down               from               the               previous               month               and               up               7.5               percent               from               March               last               year.

What               do               these               data               mean               for               economic               recovery?
               Not               much.

Nor               do               the               data               mean               that               economic               recovery               is               occurring               at               all.

Let's               consider               the               government               information               from               another               perspective.
               The               government               reported               the               sale               of               new               homes,               the               ones               whose               construction               completed               after               starting               from               scratch.

Such               new               housing               starts               represent               production               that               did               not               exist               before.

New               houses               require               new               construction               jobs,               new               lumber,               new               materials,               new               manufactured               goods               to               make               a               product               where               none               was               before               --               in               a               word,               growth.

There's               little               of               that               in               America               anymore.
               OK,               so               328,000               new               homes               sold               last               month.

What               about               all               the               existing               and               foreclosed               homes               on               the               market               that               didn't               sell               at               all?
               Houses               are               simply               not               selling               well               across               the               nation.

By               all               accounts               by               real               people,               the               housing               market               is               dead.

Anecdotal               data               by               cross-country               travelers               like               myself               see               rampant               For               Sale               signs               densely               posted               in               neighborhoods,               not               counting               the               houses               for               sale               with               no               signs               or               ones               that               I               undoubtedly               missed.

It               isn't               surprising               for               neighborhoods,               towns,               and               cities               to               carry               a               10-year               inventory               of               homes               for               sale.

No               matter               how               low               a               local               existing               inventory               is,               it's               always               expressed               in               years.
               People               seeking               to               "test               the               waters"               put               up               their               homes               to               see               what               will               happen.

Nothing               does.

People               who               must               sell               their               homes               must               post               their               asking               price               below               what               they               paid               to               build               or               buy               it               in               the               past.

Many               are               "under               water,"               which               means               that               the               mortgage               balance               is               more               than               the               house               is               worth               in               the               market.

Personal               experience               shows               no               sales               on               my               own               fair-priced               properties.
               Connecting               with               neighbors,               friends,               and               family               across               the               nation               reveal               sluggish               sales,               if               any               at               all.

To               sell               your               house,               you've               got               to               take               a               loss,               and               a               big               one               at               that.

The               family               home               has               become               a               losing               investment.

Negative               return               characterizes               the               investment               that               used               to               bring               the               American               Dream               to               families               in               this               country.

The               dream               has               morphed               to               nightmare,               bringing               devastation               to               the               family               unit               as               well               as               to               the               home               that               housed               it.
               Tight               money               and               overly               restrictive               credit               aren't               helping               housing.

Recovery               cannot               be               expected               until               jobs               create               incomes               so               that               people               can               afford               to               buy               one               again.

Neither               employment               nor               credit               show               signs               of               increasing.

And               we               may               not               have               seen               the               worst               yet,               as               wealth-creating               private               sector               industries               are               drying               up               completely               while               non-productive               government               grows.
               We               can,               however,               look               to               the               ideologically               pure               interpretations               of               government               data               from               the               positive               views               of               mainstream               and               social               media.

Believe               those               rosy               outlooks               if               you               like               and               I'll               have               both               a               bridge               and               a               house               to               sell               you.







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