Yes, it’s true that the builders are selling well.
Now, is it because:
1. The demand for homes is high.
2. Or, this is a reflection of the “pricing strategy”. That is, even in a market where there are few buyers, if you lower the price aggressively, you’ll be able to sell.
IMO, it’s reason #2. For every new home that is
sold, a re-sale is NOT sold. The builders are simply
stealing sales away from the re-sale market.
The problems with all those homes owned by speculators
using exotic mortgages haven’t gone away. In other words,
what’s good for the builders is bad for the market.
This is very bad news for the speculators. Which means
we are definitely not at the bottom.
