Builders build. That is what they do. Supply side economics?? Don’t make me laugh, seriously. I gues they will hold onto that inventory at inflated prices while they burn cash building and have to pay their people?? You are talking to someone with years of experience in manufacturing. Holding inventory is bad. Trust me on that one. The builders are undercutting flippers and offering incentives to get their homes to sell. Have not seen the articles about builders getting sued by recent customers because they lowered the prices?? I believe it was lennar.
You are talking about something completely different than what I am referring too. I am not referring to built out inventories. I am referring to land options that they are simply walking away from. Del Sur and San Elijo Hills. This was actually referred to in todays Union Tribune. It was actually a decent article. Unusual for the Union Trib.
As for the Fed raising rates, I would think that they would. I look at the costs of food and gas and there is inflation. I also think back to around 2002 when the fed raised from 8.5 to 8.75 ultimately getting to 9 and the stock market surged in light of these raises. I feel like we are going through this all over again.
In light of short term rates long term rates are still low. Inverted yield curve(already know sign of recession) but nin light of interest rates they ahve gone down. If rates reset and are low and the governemtnsteps in to assist many borrowers hurt by the reset you might not see a crash. Additionally we are going to be entering into an election year and GOP is going to have people looking at 401K going up, home ownership going up econoimic prosperity to sidetrack the discussion of the war. Don’t be surprised if gloom and doom does not come.
