Biz media miss housing story

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1 Response

  1. Joey says:

    >>The future direction of housing prices are arguably the most critical factor in the most critical nation in the most critical financial crisis since the Great Depression.<<

    Well, no kidding, but the future direction of housing prices is largely determined by sales of *existing* homes, not the *new* homes that this guy moaning about. Changes in the price of new homes could be shaped by the type of home being built (smaller = cheaper) or by the volume of homes being built in various markets (condo developers in Miami are forced to see new projects through, despite a glut, pushing down prices).

    If you want a useful statistic about the direction of home prices, you study the volume of new homes relative to existing ones, the resale price of existing homes, and the correlation between local unemployment and home sale prices. Taken together, they give you a much better glimpse into the future of things. New homes sales alone does not, and neither does this guy's critique.

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