The inventory of unsold homes rose to 10.9 months in May, meaning it would take that long to exhaust the current supply of unsold homes. Because of the unusually high inventories, economists believe that home prices will keep falling until the spring of next year.
The prolonged problems in housing have dragged down the overall economy, raising the risks of a full-blown recession.
Oddly, the Midwest kicked butt nationally and home sales increased by about 5%.
I have a simple solution to the housing slump: stop issuing building permits. For example, there are a finite number of people in Indy or any other area. If you keep building homes, typically the result of urban sprawl as we’re finding that folks in Westfield and Noblesville can’t build enough stick homes fast enough. If counties discontinued building permits, people would be forced to revitalize older homes. Thus, increasing demand, raising the prices of homes and the economy, reducing urban sprawl, revitalizing areas torn by urban decay AND it’s all good for the fat cats and bottom rungs of society.
But no one asked me.