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The Deflating Bubble - Doug French - Mises Institute: "Guaranty Bank of Austin recently demolished 16 new and partially built homes in Victorville, California. The cost of finishing the development exceeded what they could sell the homes for despite four of the homes already being complete."
"Morgan points to a California program that offers a $10,000 tax credit for buyers of new homes. Thus, encouraging the building of redundant houses, at the same time homes are being bulldozed in Victorville. The annual sales pace is 300,000 homes, yet 500,000 new homes are being started that will just add to a bloated inventory."
Wednesday, July 01, 2009
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