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Shortage of houses?

Posted by bus_driver (My Page) on
Thu, Jun 24, 10 at 17:36

"Is a Housing Shortage Coming?
A CNNMoney.com article states, "As the nation struggles to shrug off the worst housing crash since the Great Depression, it may be hard to believe a housing shortage could be on its way." Their reason? Our country is simply not building enough new homes to keep up with potential demand. The number of new homes started in April, when annualized, is less than half the long-term run rate needed to meet the nation's population growth. Our local market still has a large amount of inventory for sale (buyer's market); however, significant statistical improvements have occurred in recent months. If this trend continues, we would first see a stabilization of housing prices, followed by a potential housing shortage (seller's market). One thing that all economists point to as a necessary factor in the housing market recovery -- job creation."


Follow-Up Postings:

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RE: Shortage of houses?

The construction/home building industry is the EASIEST part of the DJIA to restart. Add the new construction numbers to the huge 'shadow inventory' being held by financial institutions, and there is still a more than generous supply of housing available for future purchase. I know a lot of people who would be willing to put their houses up for sale if they thought they could find buyers who could actually qualify for mortgages.


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RE: Shortage of houses?

Yep. I see it that way too. Also, I do believe if we have any sense we'll keep the cap on extending iffy credit and then you gotta get people actually back to work. Regardless of the numbers we are hearing, I know our county is at 17% unemployment right now, and that's not including the people who just gave up looking for work. They're not counted in the unemployment figures.


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RE: Shortage of houses?

The "under employed" are not counted either...meaning those who at one time earned a good living who are now forced to work two and three low wage jobs.

I think that CNN article may have been based on the opinion of the National Home Builders Association ...because we are never building enough new homes to suit those who only make money from new construction.


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RE: Shortage of houses?

calliope,

Where do you get your 17% unemployment figure?


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RE: Shortage of houses?

The county announced it....and the media passed it along. I live in Appalachia.


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RE: Shortage of houses?

In a market economy, there really is never a shortage of homes as in "People can't find a home to live in." If lots of people start trying to buy homes and there aren't many on the market, then prices go up. That encourages builders to build more houses and current owners to sell. If demand weakens, prices go down and builders slow construction. It isn't instantaneous, but even major "corrections" usually stabilize in a year or so.


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RE: Shortage of houses?

calliope,

I see now. You said (quite clearly) county which I read as country.


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