The number of previously owned unsold homes on the market at the end of April jumped to 4.55 million, up from 4.12 million in March. The total represented 11.2 months' supply at the current sales pace, the highest on record and up from 10 months at the end of the prior month.
This is a super-glut. Combine this with the price news from earlier today and you have big problems. Still.
3 comments:
I enjoy your blog and respect your opinions. Because of that I would like to ask you why you have decided to buy a house in this market (you mentioned it in a past post). I know that this is a complex decision but is there a short answer that you could give as to why you would buy when we are nowhere near the bottom?
I don't know about Bonddad, but personally I've been watching the foreclosure market like a hawk. Even in a declining market, there are houses that will hold value. And even if they lose some value, as long as you get a good enough price, it's still a better investment than renting. Especially if you plan to be in the same place long enough for the market to recover. It's the people that plan to flip a house in less than a couple years that should be staying out of the market right now.
I don't know how closely you follow The Economist, but they have an interesting article on the global housing market that you might find of interest.
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