Monday, 29 August 2011

it's 1963 flashback time in housing

What a wonderful trip down memory lane this US Housing Bubble has brought us.

It reminds us of a better, simpler time, when the US population was around 200 million.

New homes are now selling at the same rate as they were in 1963.
Isn't that a sign of a depression?
Isn't capitalism supposed to grow and progress?

I prefer 1969, myself.

and 1970

checkitout: Mish
New Home Sales at 1963 Levels
The Los Angeles Times reports New home sales drop to six-month low
Sales of newly built homes fell in July to the lowest level in six months, as the nation's housing market continues to struggle.
Newly constructed single-family homes sold at a seasonally adjusted annual rate of 298,000, putting the industry on a pace to post the lowest annual sales since the Commerce Department began keeping data in 1963.
Is the eligible buyers' pool getting bigger or smaller?
The trend says smaller, in spite of falling interest rates and falling prices. Many items on my 7 point list are more important than interest rates, notably 1, 2, 3, 5, and 7.
That is the psychology of the situation and
I see little reason for it to change until the labor market changes first.
Mike "Mish" Shedlock....end
[ignore that last line. Mish often tries to blame labour and unions for some of the problems we see, which is nuts. He's lucky he gets paid to pound a keyboard-Cos67]