Wednesday, March 24, 2010

Housing "Recovery" Continues

We received new data on the state of the media's housing market recovery this week:

Yesterday's news showed existing home sales falling for the third consecutive month.  The annual sales number fell to 5.02 million, down substantially from the recent high created with the artificial government stimulus.

The inventory on the market soared from a 7.8 month supply, up to 8.6 months.  The supply increase has been due mainly to the foreclosures coming onto the market, a trend that is only just now beginning.  The total inventory, including the shadow homes that banks are holding off the market, is estimated to be double that at around 18 months.

Today we received word that new home sales last month plunged to an all time record low of 308,000 annually.

Once a year my local paper publishes a report showing companies that have not paid their taxes.  The publication is put out to incentivize companies to pay their bills in order to avoid the stigma that their business may be in trouble.

The $43 million in unpaid taxes for my county alone read like an obituary for anything and everything involved with land, building, or real estate.

Fortunately the media has announced the bottom in the housing market so this information should not have an impact on real estate prices.  (Which are also falling every month across the board)

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