Housing Market Ups And Downs
It seems like some housing analysts are grasping at straws as they try to tell us that real estate is on its way back. When the best you can say is that numbers aren’t as bad as previous, but they’re still bad, it makes you wonder what kind of accounting classes they took in school.
For instance, California reported a foreclosure rate of 31.9%, which is scary to think of. Yet, because it was lower than April’s rate of 35%, some are seeing that as the market turning for the better. In my mind, if I lost $46 million, but it was less than $50 million from last year, that’s still not good. Now, if I lost only $4 million, I’d say I was almost there.
Then there’s Arizona, which announced a 30% foreclosure rate, but feels pretty good because it’s less than the 51% foreclosure rate they had in February. After you’ve foreclosed on 51% of your houses, what could be left where 30% could be considered as a good number?
Okay, so the news isn’t all bad. The Orlando, FL area showed an increase in house sales of 38%, while Des Moines, IA showed an increase of 21%. Even Detroit showed an increase of around 12%, which is phenomenal because of all the job losses there. That, and overall housing starts in the country are up 5.9%, which is always a good thing.
Still, there’s a very long way to go. There are so many previously owned homes on the market and more homes are being built by home builders, hoping that people would rather move into brand new homes in planned communities.
I’m not sure about the marketing strategy there, or whether that’s even a good thing. I can’t see how existing neighborhoods are well served by having a glut of homes that no one wants to buy, no matter how expensive and exclusive the area used to be. Communities overall will have to deal with this, I know, but somewhere and somehow, it seems that a bit more fiscal responsibility needs to be undertaken to help them fight their way through this problem.
Then again, everyone deserves to make a buck.