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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