A recent post on The Housing Recovery dealt with the problems of foreclosures and their effects on housing. Specifically, the homes in foreclosure and expected to soon be in foreclosure represent almost nine years supply at the current rate of sales transactions.
Not counted in the above calculation are the homes currently on the market (normal buying-selling) and the “shadow” inventory of homes. Shadow inventory refers to those homeowners who want to sell their homes but do not put them on the market until conditions improve.
These problems represent short-term problems, if you consider ten or so years as short-term. Now, we are introduced to the long-term problem presented by demographics. In an article entitled If Demographics is Destiny, then America’s Future Sucks:
Desperate homeowners counting on a “V” shaped recovery in residential real estate prices to bail them out better first take a close look at global demographic data, which tells us there will be no recovery at all.
To understand the demographic problem and its effect on housing, read the article.
This demographic effect will be felt in areas beyond housing.
Idiots in Washington and Their New Housing Program
Housing Disaster in Perspective
Middleton on Housing
Public Nuisance at the NY Times
Blowing More Housing Bubbles
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