A fascinating story caught my eye in a recent edition of the New York Times: More new homes are being built—at a remarkable pace—in markets where the real estate market was hit hardest, like Las Vegas. Click here to read the story.
Implications: While this story focuses largely on investors, bankers and other speculator participants, it also suggests that home buyers are less inclined to buy homes that were the subject of foreclosure. Two reasons: First, individual homebuyers have a hard time competing with investors that are swooping in with cash. But second—and most impressively—the story suggests that home buyers are so fixated on the latest, greatest homes that they will not consider one that is two or three years old… even if it is new.
How long is your inventory attractive? When does it spoil?
Mike Anderson
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