"In January, builders sold a whopping 1000 houses per day nationally. During the same month, Foreclosures rang up at 4300 and Notice-of-Defaults at 5100 per day nationally. What a mess. I really thought earlier in the year with massive mortgage rate and tax stimuli -- and the purposeful lack of distressed inventory due to HAMP and other mortgage mod and foreclosure prevention initiatives -- that builders had a shot at some volume.
"But their window of opportunity has now passed. With HAFA coming on line and foreclosures, short sales and deeds-in-lieu about to dump significantly more distressed inventory on the market throughout 2010, the odds that of any meaningful pickup in builder output or sales is significantly decreasing daily."
This from John Mauldin, and to read this week's letter on The Multiplication of Money, go here.
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