Time To Sell A Home Upon Completion Hits Record 13.9 Months, 50% Longer Than Prior Year
Yesterday's uptick in the housing inventory backlog (from 7.6 months supply to 8.1) has another corollary, which, as David Rosenberg points out, is the median amount of time it takes builders to sell a completed unit. The number is now 13.9 months: an all time record, and 50% higher than a year ago. Good thing all that shadow inventory is nothing to be worried about as Cramer says.
And some macroeconomic observations from Rosie, this time on the topic of consumer savings:
The economy may be suffering from an ailment known to economists as ‘Ricardian Equivalence’ — when fiscal stimulus on top of a record debt burden causes ‘economic agents’ to not respond because they realize that by the government probing the outer limits of deficit finance, higher taxes are what lies ahead. So what people do is save, not spend. In fact, a just-released CNN/Opinion Research poll found that 56% of the American public now oppose more fiscal stimulus; 42% are in favour of more largesse.