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Thursday, September 23, 2010

Housing 'Recovery' a Mirage: Short Homebuilders, Glenn Tongue Says

Look what Glenn has to say.

Tongue predicts U.S. home prices are likely to fall another 7%-10%, with only massive government subsidies for housing preventing even bigger declines. There are 11 million homes in America where the mortgage is underwater and "7 million Americans who are not paying their mortgages right now," he says.
With those kinds of numbers, we have about two years of housing inventory, meaning we sure don’t need any more new construction, which is not a good sign for homebuilders.
This was an analysis of homebuilder stock price, but he also breaks down some market and inventory news.
Read it all

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