New Home Building Falling

missmanors · #1 08-19-2008, 08:32 PM

According to a report released on Tuesday by the government, new homes being built fell in July 11%, to an annual rate of 965,000. This could be a boon to the glut of houses on the market, since these homes are only likely to be sold if new homes on the market cease to come in to play.

Builders faced an average wait time of 8.4%, in June to sell a completed home, which is the longest selling time in 25 years, according to a Census Burear report. The chief economist for the National Association of Home Builders, said that he hopse that these low levels of single family permits is a sign of a decline of the glut of homes on the housing market.

It is hoped that problems such as job losses and the credit crunch will not affect further affect the housing market detrimentally in the near future. With the weakening economy in the second half of this year and in the early part of next year, it is feared that the housing market will not pull out of it's slump any time soon.

flippinout · #2 08-20-2008, 08:16 AM

It is hard to fathom how building new homes could be profitable right now with all the foreclosed homes that have glutted the market as of late.

And you are so right, with the job market being what it is, what with all the jobs that have been lost, and the economy in dire straits right now, I dont even see how many of the foreclosed homes might sell anytime soon.

People are having a hard time just making it from day to day with everyday expenses, plus you take into consideration how hard it is to get a loan these days, and it seems that buying a home would be very hard to do, let alone building and selling new ones.

JaredfromIndiana · #3 08-20-2008, 12:26 PM

Plus with all the foreclosed homes on the market that are 2-5 years old that you can pick up for 70-80% of the value why would you buy new?

flippinout · #4 08-20-2008, 06:19 PM

My thoughts exactly Jared. I can understand wanting new if you want to move to a certain place, say, in the country and theres no house there to buy, but other than that, theres so much out there to choose from, that a person would surely find something to their liking, and that suits their pocketbook.