New Homes, G Alert Rundown
It is all doom and gloom… or at least it seems… could they not find just one positive? Something to hold onto… ah it’s not so bad, these 2 articles could be worse…
Vacant Homes set a record high first quarter, as 2.9% of U.S. homes are vacant and for sale. In addition, new homebuilders continue to try to stimulate sales by slashing prices and increasing new home purchase incentives. Did I mention that overall inventory problems are getting worse? Read more statistics and the article Vacant Homes Set New Record High in First Quarter at www.money.cnn.com.
The market value of national homebuilders in the Standard & Poor’s 500 Index is now 67% less following “the worse housing slump in 70 years” (Thomasson and Louis, Bloomberg.com). Years ago, home developers boasted a market value of nearly $50 billion ($49.2b, combined), and today, they share a worth of only $16 billion. Since 2006, the 15 largest public builders have written off $22.6 billion in land, joint ventures and other expenses. Read this article Homebuilders Turning Into Small Caps After 67% Slump (Update1) for more details and a complete story.
hat is it, unless you want to read about new homes in England and in Stolipinovo or about new homes planned for construction in Chichester, England that may foul up the sewage system. Let me know if you do and I will include similar stories in future G Alert Rundowns.
On a positive note, I have heard from homebuilders and agents that things are starting to pick up in certain markets. In those markets, the worst may be over.
See more:
New Homes for Sale
Building, Buying & Owning A New Home
Technical Resources: Guidelines for ENERGY STAR Qualified New Homes
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A lot of people will be struggling for a little while, but hold on and ride it out – this is considered a normal pattern in the economy.