Until the excess inventory of 950,000 single-family homes and condos sitting vacant in the United States has been depleted, no significant housing upturn is likely until 2010 at the earliest, according to a housing market analysis.
In its latest issue of Research Notes, the National Multi Housing Council estimated there are approximately 825,000 excess vacant single-family homes and 125,000 excess vacant condos beyond normal vacancy levels in the United States. Add to that some 2 million in excess houses and condos that are occupied and on the market, and the housing market faces incredibly rough times over at least the next 14 months.
To put these figures in perspective, the current excess inventory of 825,000 vacant single-family homes is actually greater than an average year of production in the 1990s, which was 725,000 units per year. The excess inventory will continue to push prices lower, according to NMHC.
What’s your opinion? Leave your comments below or send a letter to the editor.