HUD chief warns of “fundamental oversupply” of houses
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
The nation’s top housing official warned today that America has a ‘fundamental oversupply’ of homes for sale, and that as many as 2 million homes will be foreclosed on this year.
The U.S. economy is suffering from a ‘fundamental oversupply’’ of homes and a glut of subprime mortgages scheduled to reset through 2010 that will continue to weigh on housing prices, Housing and Urban Development Secretary Steven Preston said. ‘As we entered this crisis our markets had become more complex and interdependent than anyone really understood with respect to asset classes, financial institutions and geographies,’’ Preston said during a speech in Washington today.
You can read Preston’s entire speech here. Other highlights:
A full 9 percent of all loans in this country are either delinquent or in some state of foreclosure. ... Nationwide, we have an 11-month inventory of supply of housing relative to sales.
Your thoughts? Comments? E-mail story tips to Peter Viles, or follow L.A. Land on Twitter.
--Peter Viles
Photo Credit: A.P.