Oregon Public Broadcasting (OPB) reported this Thursday on the increased sales but lower prices year-over-year for single-family homes. The very small number of new home sales (lowest in 50 years) is most telling of investor confidence and lack of pricing power. Until the foreclosure backlog is cleared, builders just cannot compete on price. I also think the difference in sales for the first six months compared to the slow end of the year will only keep developers and lenders cautious and unwilling to build on speculation. Read the full report.
One bright light is at the highest end of custom home-building, at least for the Silicon Valley technology winners: Silicon Valley Homebuilder Finds A Profitable Niche