Wednesday, May 23, 2012

Housing recovery a long way off

In a CNBC editorial, Michael Yoshikami argues that a housing market recovery is still a long way away:
Housing starts were surprisingly strong this week, while there was improving sentiment from home builders. So should we start to breathe a sigh of relief that the housing market is returning to health? The short answer is no. The headlines say that housing is stabilizing and there are signs of life in the real estate sector. This is true but is only part of the story. Signs of life is far different than a return to healthier times.

While KB Homes and Toll Brothers are reporting sales increases, this does not erase the fundamental problem with the real estate market today; there are too many people wanting to sell and not enough buyers. In some neighborhoods in the United States, every other house is for sale and sitting stagnant with no takers. But this is the obvious sign that the real estate market is troubled; there are deeper problems below the surface.

What is more troubling is in every block in neighborhoods across the United States, there are huge numbers of potential sellers that would sell their house if they could get the price they believe their house is worth. This huge reserve of sellers creates a supply waiting to flood the market when any sign of recovery in real estate capital values returns.

Additionally, banks continue to hold huge inventories of foreclosed properties waiting for a rebound in the market before placing these properties into the real estate market. ...

In addition to supply issues, the U.S. economy is far from healthy. While we are in the midst of an uneven recovery, unemployment remains stubbornly high and the prospects of a more normalized employment rate are far off in the distance.


  1. we wage the kitchen appliances, exhaustive furnishing accumulation and all that utilities that you requisite that you impoverishment.
    baltimore corporate housing

  2. Dear bubblemeter blog authors,

    am hereby contacting you, following a visit of your blog, which I
    find very appropriate for a publication.

    am an employee of Bloggingbooks publishing house, which is the new
    publishing brand of the well-established scientific publishing
    house, known as SVH Verlag. We are currently actively looking for
    new authors.

    would like to broaden its publication's portfolio and in this
    respect, comes my question: would you have any interest in publishing
    your blog posts into book format?

    will find information about bloggingbooks on our homepage
    The best way to get in touch with me will be per e-mail.

    am looking forward to hearing from you.

    email: m [dot] gorbulea [at] bloggingbooks [dot] de