New home sales were flat so I assume they are. Aren’t there too many used homes on the market?
Yes, the existing homes need to be sold before the construction industry can get back to work. This country only has 3 Industries, Building Homes, Manufacturing Cars, and Medical Industry (which is the largest non government employer in the U.S.) Manufacturing depends on Construction and Medical salaries paid to employees for money to sustain itself.
There is a surplus inventory of existing homes on the market. The supply and demand law is driving the prices of existing homes down below the cost of building a home in some areas. Almost no one builds when materials cost exceeds the sales price.
The only new homes being built are by people who want a specific thing in their homes, or don’t mind paying more for a new construction just to have a new construction.
To get this countries economy moving again, we need to get those surplus existing houses off the market and drive up the cost of new homes so they can be sold at a profit and not a loss.
March 5th, 2010 at 9:59 am
Well…I personally think buying a "used" or older home is a better idea. It’s often cheaper and there a MANY nice homes that have been standing for many years (in my area anyways) Sometimes the older home have better construction. The house I’m buying is 100+ and the house itself is very sturdy and the foundation is excellent.
Of coarse if you have the money and somewhere to put it, a new home is always nice. You can have it built the way you want. Of coarse all the pluming, electrical, seweage and jazz have to be done as well.
References :
March 5th, 2010 at 10:48 am
Yes, the existing homes need to be sold before the construction industry can get back to work. This country only has 3 Industries, Building Homes, Manufacturing Cars, and Medical Industry (which is the largest non government employer in the U.S.) Manufacturing depends on Construction and Medical salaries paid to employees for money to sustain itself.
There is a surplus inventory of existing homes on the market. The supply and demand law is driving the prices of existing homes down below the cost of building a home in some areas. Almost no one builds when materials cost exceeds the sales price.
The only new homes being built are by people who want a specific thing in their homes, or don’t mind paying more for a new construction just to have a new construction.
To get this countries economy moving again, we need to get those surplus existing houses off the market and drive up the cost of new homes so they can be sold at a profit and not a loss.
References :
March 5th, 2010 at 11:01 am
"Isn’t it a good thing used homes are selling faster than new homes?"
Technically speaking,, Yes,,,, realistically … Nope,,
""Aren’t there too many used homes on the market?""
Home building is one of the biggest movers of the US economy, Sales of pre-existing homes really don’t stimulate the economy,
Until the glut of pre-existing homes (ie, seller selling for whatever reason, foreclosed or empty new construction ) dries up and demand for new homes increases, the economy will likely remain remain flat,,, and home prices depressed,
Depressed home prices also carry their burden over to city/county financial causing troubles of their own, since less building and lower prices mean less revenue from building permits and property taxes,,, which they rely on to fund operations..
References :
March 5th, 2010 at 11:38 am
Used homes are cheaper and you can find nice ones. Due to down market most people opt to buy foreclosed homes.
References :
http://www.ReverseThatForeclosure.com