Tuesday, June 21, 2005

Did anyone else see this in USA Today? Am I wrong to think it's a bit worrisome?

Unbuilt Homes Sell Like Crazy

The number of houses for sale even before they're built has jumped 47% the past 12 months, adding to worries that overbuilding and speculation could bring the housing boom to a bust.

...April's number is the highest since the government began tracking it in 1973.

... a glut of new houses could end the housing boom -- and, possibly, stick builders and speculators with undeveloped property if the boom goes bust....

Another worry: Unbuilt homes for sale could be used for flipping, buying in hopes of selling for a quick profit. In pre-construction flipping, a speculator puts a deposit down on an unbuilt home and sells it on completion -- or even before....

Maybe I'm missing something here, but is there a huge difference between day-trading tech stocks that have never made a profit and flipping houses that have never been lived in?

I seem to recall that the '90s stock boom didn't end particularly well. Ah, but this time it's different -- right?

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