HB CEO's simply refusing to accept responsiblity????
June 26, 2008
– Comments (5)
A comment this morning from Lennar's CEO:
Lennar Chief Executive Stuart Miller, citing rising foreclosures and unemployment along with sagging consumer confidence, said the industry needed government help.
"With the U.S. housing inventory growing in excess of absorption and limited credit availability, the prospect of further deterioration in the home building industry will likely become reality absent federal government action," he said.
"We are hopeful that the federal government will acknowledge the need for further reform and will institute programs designed to stabilize and facilitate the recovery of the housing market," he added.
Much of that inventory growth is coming from existing homes coming to market and homes being foreclosed. Another big part of the problem comes from new home builders constructing spec homes. The easiest way for builders to stop contributing to the problem would be to stop building specs and liquidating them at losses.
Right now there is an affordiblity issue with housing. As prices for non housing related expenses skyrocket, the dollars left for housing declines. The cost of homeownership must come into line with ability to pay.....that means continued price declines until the two balance.
Based on my analysis we still have a long way to go....especially if commodity prices keep rising and job losses keep increasing.
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