As in wow, I can't believe 47% of the fools who had new home contracts actually went ahead and CLOSED!
Also note in the article that Vegas is the #1 most overbuilt housing market in America. Uh, ya think? HP poster children Phoenix, Miami and Orlando and West Palm are also up there.
Bottom line - there are millions of homes out there that we simply don't need. And even with new home builders going to fire sale prices, the units still aren't moving, since people can no longer get a mortgage. Classic end to a classic mania. Why are some idiots still debating us? It's over. O-V-E-R. The sheeple don't believe the lies anymore.
Home Builders Research released its stats Monday that show the cancellation rate on purchases of new homes in the valley jumped to 53 percent in August.
The rate had been closer to 30 percent two months ago before lenders starting tightening credit. Lenders are requiring higher credit scores, and those who don't have good credit are required to put down a greater down payment or pay higher interest rates.
Even people with good credit are finding it harder to get jumbo loans of $417,000 and above. Those who can't document their income are also having difficulty getting loans.
"Buyers are certainly not canceling because they are changing their minds," said Dennis Smith, president of Home Builders Research. "They are canceling because something has changed in their monthly payments."
The cancellation rates have been evident in homebuilders drastically dropping their prices in the last two to three months.