Housing needs to go back to reasonable levels. If we keep trying to stimulate the market, that’s the definition of insanity.
George Mason University real estate finance professor Anthony B. Sanders • Suggesting we let the housing market go to hell so it can correct itself. It’s a somewhat unique argument, but considering the way that overdevelopment and overbuilding has defined the real estate market of the last decade. So, the debate as it currently stands: Does the Obama administration keep trying to stimulate growth in the housing market, or does it focus less on devlopment and more on ensuring the value of the investments that millions of homeowners have already made? A tough answer, but we think the latter sounds like a good idea. source
5%decline in housing starts in June, an 8-month low source
» Silver lining: On the plus side, there was a very modest 2.1 percent increase in new permits, an early indicator of how the housing market is going. After the rough month or two the housing market has faced, at least that’s something.
3.8%increase in home prices year-over-year in April source
» Why it’s misleading: Basically, this number is up 3.8 percent from one of the lowest levels on record. It’s still 30 percent off its peak level. Also, we have to imagine the May numbers will suck even worse, what with that 33 percent drop in new home sales and all.
7.6%boost in previously-owned home sales in April source
» Why the leap? Simply put, there was a homebuyer tax credit that was about to expire at the end of April, and it led to a leap in sales to their highest levels since November. Now if only those sales were happening without, you know, big tax credits.