From the WSJ's Developments blog:
It’s not easy being a home builder these days. Total sales have hit record lows, foreclosure resales are pulling away potential buyers and people remain unwilling or unable to borrow at today’s low mortgage rates.
- Prices in thousands
And, oh yeah, home prices are falling.
Rick Palacios Jr., a senior research analyst at Irvine, Calif.-based John Burns Real Estate Consulting, has a note out Friday arguing that builders need to look at the changes in consumer attitudes behind the lower prices. Buyers want affordable homes, he says, making sales between $200,000 and $300,000 the “new normal.” “In order for a genuine spring-selling season to materialize builders must pay close attention to this structural pricing shift that continues to unfold.”...MORE
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