Several of England’s largest residential contractors noted that orders for new houses dropped 50% in the last six weeks compared to last year. Stewart Baseley of the Home Builders Federation stated in The Economist that, “The market just fell off a cliff.”
It seems tightened credit has made home buying more difficult in Europe and America. In some areas, developers simply overbuilt for market demand, as well, which further depresses new home starts. Though the talk about global housing crash seems to be more talk then reality.
I don’t hear about any construction markets that have really crashed. We seem to be experiencing the normal ups and downs of the market.
Construction Knowledge Blog 
Not bad here in southeast USA. A correction has been long overdue, in my opinion.
This is purely anecdotal, but several people I’ve talked to have had the similar experience of a lender telling them they can afford a lot more house than they are willing to go into debt for. A lot of the problem is with brokers whose honest evaluations are tainted by greed caused by a lack of accountability. They are selling loans and so there is more incentive to fudge the numbers because it is not their money.
Government bailouts don’t punish them, rather it rewards them, and lost in all of this seems to be the old adage, caveat emptor, or, let the buyer beware.
This attitude relies upon an educated consumer.
The old-fashioned Home Economics classes should be renamed, “Consumer Economics”. It should be a required High School course, not middle school (too far away from facing real life). It should be more about savings, investing, finance management, loans, debts, operating a business and what makes an employee more valuable, and a lot less about baking cakes.
Free markets need smart, educated people, including cooks and bakers!
By: Dan on May 31, 2008
at 10:38 pm