Even uber-bearish housing analyst Mark Hanson was taken aback by the shortfall in home sales this morning. Even he thought that the remaining homebuyer tax credit, plus all the other stimulus out there, would produce a rise in new home sales.
But no. September was the worst month since 1981.
Builders, of course, will use the number as evidence that the subsidy MUST remain in place, but at this point there’s probably no helping them. See, new homes compete for low-end homebuyers with foreclosures, and though we’re still limiting the number of foreclosures out there (through moratoria and whatnot) the wave is just enormous.