There are well over 4.5 million used homes for sale (on the MLS), plus all those new homes and FSBOs. Can you imagine being one of 'em?

Someone try to figure out how many homes are really unwanted and for sale in the US today.

'Cause it's not just the record 4.58 million the NAR reports, it's the investor-owned units being rented out "until the market settles", it's the foreclosures and pre-foreclosures, it's the new homes, it's the spec homes, it's the cancelled contracts returned to market, it's the homes and condos still being built, it's the FSBO and Craigslist homes, and it's all the homes buyers have pulled off the MLS for now waiting to go back on.

It's millions. Millions and millions and millions. And like kudzu or tribbles, they just keep coming.

So, my question: Can you imagine trying to sell a home in this environment? And especially at 2005 or 2006 prices?

Get a grip folks. If you want to move your unwanted home, you're gonna have to slash the price. Just ask the folks at Hovnanian.

Classic mania. Classic crash. And now there's all this inventory that nobody wants and nobody wants to admit to themselves what its true value is.

Damn, this is gonna end ugly.

FLASH: Lennar tells us what new homes are REALLY selling for, and it's ugly. Really ugly.

We all know the NAR and US Government housing numbers are bullsh*t, as the price data doesn't include the rampant and desperate incentives and cash-back kickbacks used to move dead inventory.

Well, Lennar in their horrific numbers this week exposed the average incentive used to move a new home last month.

Ready?

Their reported new home price plummeted from $322,000 to $298,000, down $24,000, or down 7.4% vs. last year.

And their average incentive value last month?

Ready?

$43,700!

So that new home that sold for $322,000 last year? It's only really worth $254,000 today, a drop of $68,000 or 22%, and we're going even lower.

The new home price data is bullsh*t. And builders are in total firesale mode today (and so are their stocks)

Lennar Swings To Loss On Lower Home Prices As Supply Builds

For the second quarter, home deliveries fell to 8,940 from 12,506 a year earlier. The average home price dropped to $298,000 from $322,000 in the year- ago period. To attract uncertain buyers, Lennar said sales incentives averaged $ 43,700 a home versus $24,700 in the same quarter last year.

Orders for new homes plunged 31% to 8,056 from the prior year with the cancellation rate running at 29%.

Video report on Sacramento homebuilder firesale auction and screwed recent homedebtors

Gotta love the brewing war between homebuilders and their recent customers (called "screwed undercut homedebtors")

Check out the guy who bought for $580,000 when the same home now sells for $410,000.

Ouch.

Get ready America for some seriously bad stuff between homebuilders and homedebtors.