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Found this at
http://www.siliconinvestor.com/readm...msgid=22913701
I wonder what the value/quality of these houses will be when left vacant.
Will they be sold at lower prices?
http://www.siliconinvestor.com/readm...msgid=22913701
SAN FRANCISCO (MarketWatch) -- The housing slowdown has turned some areas of Phoenix and Las Vegas into "ghost towns," where many unsold homes stand empty, Janet Yellen, president of the San Francisco Federal Reserve Bank, said Monday.
Yellen said that she heard the ominous description from a "major home builder," who told her that the share of unsold homes in some subdivisions around the two Western cities has topped 80%.
"Though the situation isn't that bad everywhere, a significant buildup of home inventory implies that permits and [housing] starts may continue to fall, and the market may not recover for several years," she warned, according to the text of a speech delivered Monday at the Hong Kong Association of Northern California in San Francisco.
The housing slowdown was one of several factors Yellen cited in which she argued that the current level of interest rates is "moderately restrictive," and that it makes sense to keep it that way "for a time."
"We have yet to see the full effects of the series of 17 federal funds rate increases -- some are probably still in the pipeline," the Fed president added. "Holding the stance of policy steady for a time makes sense to me."
Yellen is a member of the Federal Open Market Committee that sets interest rates.
Yellen said that she heard the ominous description from a "major home builder," who told her that the share of unsold homes in some subdivisions around the two Western cities has topped 80%.
"Though the situation isn't that bad everywhere, a significant buildup of home inventory implies that permits and [housing] starts may continue to fall, and the market may not recover for several years," she warned, according to the text of a speech delivered Monday at the Hong Kong Association of Northern California in San Francisco.
The housing slowdown was one of several factors Yellen cited in which she argued that the current level of interest rates is "moderately restrictive," and that it makes sense to keep it that way "for a time."
"We have yet to see the full effects of the series of 17 federal funds rate increases -- some are probably still in the pipeline," the Fed president added. "Holding the stance of policy steady for a time makes sense to me."
Yellen is a member of the Federal Open Market Committee that sets interest rates.
Will they be sold at lower prices?
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