Thursday, April 07, 2005

"Unsold Homes Pile Up": Updated

I now have a link; here are some quotes from the Wall Street Journal piece. "The housing market may be red-hot in most places, but newly constructed homes are beginning to pile up in some Midwestern and Southern cities, forcing builders to offer incentives to lure prospective buyers."

"Much of the current weakness is in the market for moderately priced or entry-level homes. So far, sales are slowing mainly in areas where population and job growth have been relatively weak, such as Ohio, which has lost more jobs than any other state since 2000. Other lackluster markets include Michigan, Indiana and Kentucky."

"The recent softness has forced builders to offer an array of incentives to attract new buyers, ranging from small perks, such as swanky blinds, to ones valued at thousands of dollars. Developers are offering to pay closing costs, upgrade kitchens at no charge, subsidizing down payments, landscape the property or install air conditioning, or offer additional parking spaces in smaller subdivisions."

3 Comments:

At 1:09 PM, Anonymous Anonymous said...

Here's the linke (subscription required)

http://online.wsj.com/article/0,,SB111283477034900337-search,00.html?collection=wsjie%2F30day&vql_string=unsold+homes+pile+up%3Cin%3E%28article%2Dbody%29

Also mentioned Denver as a soft market.

 
At 3:48 PM, Anonymous Anonymous said...

Home builder sales fall 33%:

http://biz.yahoo.com/ap/050407/dominion_homes_outlook.html?.v=1

 
At 5:12 AM, Anonymous Javier said...

The bad thing in Denver for us bubble watchers is those unemployment numbers released this week. Denver had a huge jump in job growth, and now Colorado ranks 10th in the country for low unemployment.

Lots of jobs == expensive housing

Javier

 

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