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Post by unlawflcombatnt on Feb 9, 2007 4:00:51 GMT -6
For the year 2006, the number of vacant homes for sale increased to 2.14 million, while the number occupied homes increased only 1.04 million. To look at this from another angle, the increase in the number of homes at the end of 2006 was 1.7% (to 126.7 million). Meanwhile, the increase in U.S. population was on the order of 0.9% to 1.0%. Thus the supply growth was almost double the population growth. In fact, the inventory of homes on the market increased 34% in 2006. This unquestionably puts downward pressure on prices. Whether that downward pressure is enough to cause actual price declines is still to be determined. However, given that Housing Starts were 1.642 million in December (at an annualized rate), and that New Home Sales were only 1.12 million, it appears that the supply will continue to increase faster than the demand over the next 6 months. Ultimately, prices will come down as this trend continues. Add to this the rapidly increasing foreclosure rate, which puts still more homes on the market, and the supply will increase even further.
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Post by blueneck on Feb 11, 2007 16:50:35 GMT -6
seeing more and more foreclosure "orange tags" on front windows around town, and existing homes sitting on the market for months and months, in areas a year or so ago houses would have been sold in 3-4 weeks tops. Just down the street we had a young couple literally skip out in the middle of the night, after the repo men took one of their cars - the house sat vacant for over six months before they resold it at auction.
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Post by jeffolie on Feb 12, 2007 21:44:47 GMT -6
The vacant housing numbers are understated because builders count as sold those house deal that have been cancelled. The builders have seen cancellation rates of about 37% recently ( down from the mid 40%'s).
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