I came across this article on MSN Money….it is suggesting that we may actually be heading for a housing shortage!!!

Here is an excerpt from the article by; Smart Money

“With all the talk of excess inventory and a flood of foreclosures, the idea of a looming housing shortage sounds unrealistic, if not downright fanciful.
After all, data from the National Association of Realtors showed a 5.1% decline in existing-home sales in June. Meanwhile, total housing inventory increased 2.5%, to 4 million homes available for sale — an 8.9-month supply, up from an 8.3-month supply in May.

Foreclosures, too, are an issue, with a vast backlog of distressed properties and “underwater” loans sitting just below the surface, according to RealtyTrac, an online foreclosure marketplace. The company forecasts that more than 3 million properties will get hit with foreclosure filings by the end of the year.
But if you step back from the doom and gloom of foreclosures and declining sales and focus on the low construction levels of the past few years, some economists say a housing shortage might be in the offing. A 2009 report by Massachusetts Institute of Technology economics professor William Wheaton says that despite the glut of existing homes, with current depressed levels of construction, there might be “excess demand” for new homes.”

Click the link below to read the full story, and as always let us know what you think!

Believe it or not, a housing shortage

This entry was posted on Wednesday, August 18th, 2010 at 9:51 am and is filed under In the Media. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.