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The Struggle Is Real In The Housing Market

Scorpio

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#1
The Struggle Is Real In The Housing Market

Some are calling it the next housing crisis.

First-time homebuyers are looking for starter homes but are having trouble finding them. Homeowners hoping to move up to better homes can't find affordable options. Builders aren't building as many homes, and credit standards are strict.

There was a 4.4-month supply of unsold homes in February. A 6-month supply is considered healthy. Existing home sales tumbled in February, dropping 7.1%, the lowest level since November.

Lawrence Yun, chief economist for the National Association of Realtors, said harsh winter weather and a struggling stock market played a part in February's low numbers, but that supply and affordability are the main problems.

"Demand is high and inventory is low, which is driving up prices. That makes it a seller's market," says Crissinda Ponder, Bankrate's mortgage analyst. "Lenders are being stingy with credit because of how harshly they were reprimanded for making bad loans that caused the housing crash."

Something has to give. Lenders can loosen credit standards, but credit can't be too loose. Builders can build more homes, or home sellers can drop their asking prices.

Unfortunately, these things happen over months and years — not overnight. Welcome to the next housing crisis.
 

nickndfl

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#2
Then the banks will be mistakenly labeled racists because they will not loan to marginal borrowers. When in fact they should be labeled simple white collar crooks based on their past behavior.
 

Howdy

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#3
The solution is to not let so many foreign immigrants come here to get jobs we don't have and live in homes we haven't built them yet.