Independent, Fee-Only Financial Advisor
Thursday, September 27, 2007
Real Estate Again...
Earlier this week, the report on existing homes was released, and it showed ever-falling prices. Today, the news was about brand new homes, and the news was even more bleak. Prices on real estate continue to fall, as the supply/demand curve searches for equilibrium. Just down the street from my house, two new subdivisions are being built. Trucks are lined on the streets, with workers steadily building more homes. Did these guys NOT get the memo? The message for builders is "stop." Allow the market to catch up. But I don't think these guys know how to do anything else. Despite the news on housing, Wall Street was all green today. DJIA +34.79 NASDAQ +10.56 S&P 500 +5.96