I don't agree with the author's premise that the government needs to provide more money to bailout the hosuing market but the facts he cites are very sobering. January’s new home sales plunged by more than 11 per cent month-on-month to an annual rate of 309,000 units, the weakest on record. Based upon January's rate it will take 21 years to selloff the current inventory before the "shadow inventory" of 7.7 million gets added in.
America must do more to help its homeowners
By Mort Zuckerman
Published: March 4 2010 20:12
Last updated: March 4 2010 20:12
America’s housing crisis has not gone away. If anything, it is getting more severe. Today, median single family house prices nationwide are down by slightly more than 30 per cent from their early 2006 peak. Fusion IQ, the research group, estimates that excess inventories will push prices down by a further 10 per cent. This is a critical issue because home equity was for years the largest asset on the balance sheet of the average American family.