Desperate Homedebtors: Keep asking for prices that no sane person would pay. Keep holding out for that price you "deserve". Keep hoping against hope. Keep reading realtor blogs.
Why, you ask, would HP ask such a thing?
Because unsold and unwanted housing inventory will continue to build and build and build and build and build and build and build and build and build and build some more...
And then home prices will crash back to the level where the fundamentals will make sense again.
Toxic buildup in slumping housing market - Home builders are fighting the shrinking demand ... by adding more supply
CENTRAL VALLEY, Calif. - How do you deal with excessive supply? Add more supply!
Sounds like a head scratcher, but that’s exactly what home builders are doing.
The housing market hasn’t seen any light at the end of the tunnel: Home builders have built too many homes and they've had too many cancellations. There are too many existing homes on the market competing with them, and now here come the foreclosures adding to supply.
Though homes don’t sell, home builders are building fast in some places.
You might wonder why home builders would dig larger holes for themselves.
Standard Pacific won't comment for the story, saying the company is in the quiet period before posting earnings. But Ara Hovnanian, CEO of home builder Hovnanian Enterprise said recently that building Spec homes is about the only way to liquidate land these days.
"It's easier to sell land by popping a house on it than it is to just sell land because there are just not many buyers out there," he said.