From the WSJ's Developments blog:
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.It’s not easy being a
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