Stand Back Fed, The Developers Will Save Us
This CS Monitor story would have us believe that while the Fed and Washington, DC sit on their hands, it's the developers that will save us from a housing bust. "When it opens this fall, the owners of the 312 units will have a couple of pools to dip their toes in when they leave their mission-style abodes. But there is one thing they won't be able to do: sell their condos, that is, not until the developer has sold every one of the units."
"Limits on resales are just some of the ways that home-building communities, and bankers tightening standards, are trying to quell speculation in the housing market. By taking off some of the froth, they hope to keep one of the greatest real estate markets in the nation's history from becoming one of the biggest busts."
In light of today's news, this prediction looks silly. "This week, the National Association of Realtors forecast that existing home prices would rise 7.1 percent, compared with 11.7 percent last year."
The writer is all over the place, but leaves us with a quote that may mean more than the realtor knew. "'Some developers have gone to lotteries where they put your name in a hat to see who gets to purchase a home.' She recalls how she entered a client's name on such a list. 'It was eight months ago, and they were 188th on the list. They just called to see if we were still interested.'"