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« New Home Sales Could Be Better Than They Look | Main | Is Your Management Team Prepared for Recession? »

January 29, 2008



Looks like the y axis of the first graph is mislabeled. Shouldn't that read "percent of all houses"?

Bill Conerly

LJR, good eye. That y label for the upper chart should be percent of all non-rental housing.

Thanks, Bill

Tom Canavan Pelham, NC

"and you cannot move housing from areas of excess to areas of demand. "

actually you can and should. On the subject of tear downs, according to the EPA there are about 300,000 a year, each has a median value of $225,000 (apppx) for a total wasted opportunity to recycle, create jobs and help the housing market recover of over $67 Billion.

Contact The Benefactor Project. We want all of the houses America wants to tear down to create jobs and homeownership opportunities for those without them.
Tom Canavan

Wayne Pruner

I agree that inventory of housing needs to be reduced before prices stabilize. Interest rates dropped below 5% today. That should help move some houses. I hope there are some smart investors taking advantage of this opprotunity.
I appreciate your stab at some good news. It's still pretty bleak out there.

Laurence Hunt

Bill Fleckenstein has a nice analysis of this problem. 1. Central bank profligacy created a housing bubble. 2. Too many people bought homes they can't afford. 3. In many cases, home equity is now declining; not uncommonly it is negative for homes purchased at the peak of the bubble. 4. Prices will adjust to what people can afford to pay - that will be lower, and much lower in some regions. 5. Homebuilding will not be a good business for probably many years to come.

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