So Why All The New Houses?

catherine at 20:04 2010-05-19 said:

this was the biggest part of the problem, the investment banks gave builders so much money THAT THEY BUILT SO MANY HOMES we had to fly thru hoops to mortgage and sell all the supply they built AND THEN SECURITIZE THAT MORTGAGE TO BUILD MORE AND MORE.....................they built too much supply and oooops -- economics 101, too much supply drops the value, doesn't it???

builders wake-up, you are just like the unemployed mortgage worker and realtors, go away for about 10 years until we need you. you are building homes that are like cars - they will drop 20% THE SECOND THEY SELL.

there is no return to securitizing mortgages to make people rich..........those days are dead and gone................find another career.............your egos are amazing, now go away, the head toll brother had it right this week, cash out and run for the hills. there is no more money- we have 50-60% MORE LEVERAGE TO GO and countries are on fire around the world............we aren't going back no matter how many times the remax lady is on my TV.......NO MORE MONEY. Permalink

tvsterling at 20:45 2010-05-19 said:

The builders are building because that is their business. The alternative, going out of business doesn't seem to appeal to them. God only knows where they are getting the money. I can't picture any bank lending for this. If I find out mine is I'm pulling my money fast. I don't think they will be building right sized homes for their potential customers either. It's like the car business. America still can't build a quality small car fifty years after the import invasion. The reason is they just don't want to. Permalink