WASHINGTON - Homebuilders are sending a message: They won't be able to contribute much to the economic recovery now that government home-buying incentives have vanished.
Home construction and applications for building permits sank in May, overshadowing favorable reports on manufacturing and wholesale inflation.
Fewer homes mean fewer jobs. Construction fuels a broad swath of industries across the economy. Yet double-digit unemployment is among the main reasons people have passed on buying new homes. Even with near-record-low mortgage rates, the industry is struggling.
Anyone thinking of "The homebuying experience" these days is short a few fish of a full stringer.
ReplyDeleteOf course unless you have:
Saved up the cash.
Have the cash.
Your building a 500 sq ft home.
You had a rich uncle who loved you.
You could still have a 500 sq ft home with granite countertops though. Granite contractors are making deals!!!
A 500 sq ft McMansion?---OH YEAH!!!
Anyone who bought a new home for the miserly tax credit should know by now that their home value has already dropped 20%. Suckers!
ReplyDeletethey just said there is an extension pending likely to be passed buyers could close till september
ReplyDeleteA slow death spiral, by this time next year we will be in a full blown depression.
ReplyDeletebrock obama wont care, he will be in an underground bunker eating the few live shrimp that are left.
ReplyDeleteMost non-military production has already been shipped of by “patriotic” American capital to the cheap labour Third World. The housing construction industry was one of the few remaining productive industries. It will not recover for decades, as there is an oversupply of foreclosed houses and no demand for new houses at the old profitable price levels. The old prices were a bubble riven up by foreign supplied credit and fake Ponzi US investment vehicles like sub prime bonds. But there is no longer any confidence that real profits can be got in that industry while housing prices are falling And who would trust US Housing bonds again as Fanny and Freddy are now nationalised and in the hands of a madhouse Treasury and Fed banks openly printing counterfeit money wildly to pay the losses of F&F bonds an banksters.
ReplyDeleteThe old US is no more.Now the US is an exchanging of services based economy, including the supply of unproductive military services on behalf of its multi-nationals Its pre crisis markets GD”P” was driven 72 % by consumption, not production and circulation of manufactured physical wealth it created itself for the purpose of accumulating profits. Under the pre-crisis Dollar hegemony system, as long as foreign countries were prepared to accept that the dollar represented real value the US could export $ paper in return for commodities to countries like China or for oil from Saudi.
These countries like China, Japan and Saudi were prepared to re-invest their dollar profits back in the US at low interest in Treasury Bills or in US property as vendor finance for the US consumers. A favourite investment was the US government backed Freddie and Fanny. This easy Finance supply for mortgages created a property bubble by driving up the prices of houses. The US government itself ran up huge budget deficits every year to pay for its wars and as a form of military Keynesian stimulus for the economy.
This year alone nearly a trillion $! Poof and no Bang for the buck!!!
When the economic Crisis broke out it was first of all from a lack of confidence in American mortgage debts and in bankster bonds giving a real profit return.
As that housing bond market has not recovered and the whole US is economy is propped up in an emergency “recovery” ward next to the morgue, now dependent on the printing paper supply for its life and “profits”, the housing industry is already deader than its doornails its workers and the real world credit/money markets.
Obama went to a beach recently to demonstrate "decisive action" on balalf of his puppet masters and pointed at some tarballs on the beach.
ReplyDeleteHe said on TV;
"look at these little balls"
Being a bit of a prude ,I was embarased at a man talking like that thinking the show was porno ,not news and I didnt know where to look .
" Look at these little balls"
Indeed !
7:26 can you post a link on the possible extension. I am going to sell my home while it is still worth something and get liquid into PMs.
ReplyDeleteThey are only extending the time frame to close on a home, it still had to have had a sale by April 30th. That doesn't mean crap. Just for buyers that couldn't move right in; brand new homes not yet built, etc.
ReplyDeleteThe sock puppet needs the stimulus funds for his criminal buddies on Wall St instead.
@7:26 http://www.sun-sentinel.com/business/fl-homebuyer-credit-senate-20100616,0,1855820.story
ReplyDeleteHome Builders are scumbags.
ReplyDelete@ 8:07 Little wienies that hide behind their keyboards and take cheap shots at builders are the real scumbags.
ReplyDeleteWe will eventually, like the Japanese, be down to 0% interest mortgages to stimulate the economy.
ReplyDelete10:30- "Have you ever noticed that most builders have huge guts?"
ReplyDeleteI'm sure all you keyboard commandos have six pack abs. LOL
You builders are some greedy pricks and you will get yours soon, probably are starting to struggle now, good ya mooch!
ReplyDelete