Welcome to the Vitus Capital Blog!
Notes to myself, possibly of interest to others.
-- Bill Northlich

Monday, February 28, 2011

Housing: Too Many of 'Em

...a growing share of the home sales taking place are not first- time homebuyers turning confident but rather distressed sales of foreclosed homes. This will be key to bringing closure to the housing downturn but the volume of what is in the foreclosure pipeline ― at least two million ― promises to make the adjustment a multi-year affair going forward.

The problem for existing homeowners is what all of this supply coming into the market is going to mean ― especially with the nation-wide average resale home price back to 2002 levels ― considering that these foreclosed units are being transacted at discounts that are averaging 28% relative to the prevailing price for other homes in the secondary market.
---Rosenberg today

No comments:

Post a Comment