Friday, July 17, 2009

More Housing Starts = Not Good For Housing

Again new Housing Starts jumped in June mainly because of new builds of single family homes.

Let me say it again, housing will only bottom, when both the inventory of unsold homes gets dwindled down as well as foreclosure rates decelerate. None of these two conditions show any improvement.

Why keep building homes that are not being sold? Its only good for construction and capacity utilization, the kind of inventory that we don't need.

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