Time To Sell A Home Upon Completion Hits Record 13.9 Months, 50% Longer Than Prior Year

Tyler Durden's picture

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.

 

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bugs_'s picture

And when they say LARGEsse they ain't kiddin!

BobPaulson's picture

I'm not sure if quoting Cramer even makes sense anymore. He's no longer a minus three sigma datum, he's a random outlier that isn't even part of the set. It's past the point where he should be ridiculed. It's now at the point where he should be ignored.

This housing inventory is very important because it flies in the face of a quick turn around. There is no inflection point in the inventory time series at all. When people aren't using their house as a source of leverage, they just go back to living in them, pull into the turtle shell and hold out. When their life savings are on the line and defaults aren't being foreclosed, people have a great deal of stamina for just waiting this out. Decades? I would if the alternative was homelessness or bankruptcy, especially when when you see the "leaders" leading by example and implying shirking financial responsibility is the way to long term success. 

As I have said before, there literally aren't enough collection agencies and repo men to deal with this. Is their some kind of massive debt amnesty coming? What a catastrophe that would be. Can you imagine? Consider the logistics right now of shaking out the non-performing mortgages and auctioning the inventory down to a real market value. It would take years just to process it.

Whizbang's picture

Dude, he's a mouthpiece of the government, just like the rest of that network.

Anonymous's picture

I've got some LARGEsse for Maria Bartiromo.

Anonymous's picture

Excellent comments Bob. Totally agree.

MarketTruth's picture

Yawn... SSDD from America.

Think i'll buy more gold and silver.

carbonmutant's picture

Ryland Homes in Texas just spammed me about their "LAST CHANCE" sales on their closeout communities.