How funny for the “stuff it in” Molalla building “plans” that almost every day another bad news house building report comes down the pike. The one I post below is grim indeed. And it is grimmer still for backwater, ill run, low quality of life, broke bergs like Molalla.
Tell head in the sand Mayor “we built houses” Clarke that his bogus economy based on houses without SDCs is a massive failure. Ask him WHAT the “plan” is for a future here NOT BASED ON BUILDING HOUSES? I’ll bet he hasn’t a clue in the world!
Tell head in the sand Councilor “I never address the public” Michelle Mills that her insane statement as a member of the pathetic plannin’ commission – “we need more houses for a bigger tax base” – is a bankrupt view of how the real economy of the world works.
Tell head in the sand plannin’ commission Chair “I live in a different city and county” Dick Miller (whose personal claim to fame is that he “built houses in California!”) that the house bulidin’ isn’t a goin’ too good these days – either here or in California!
Ask the head in the sand Molalla “leaders” what’s the plan in the face of this BAD NEWS – ask them how they can defend spending money on plannin’ Potter and how they, with a straight face, will defend the “need” for 2,400 acres at County hearings?
Here in SECTION 8 VILLE – FORECLOSURE CENTRAL, I wonder who can afford to pay for meals at the TEAM proposed “family steak house”? What good old boy will get the URBAN RENEWAL money (stolen from school and fire funds!) lavished upon him for that sure to fail crazy idea – just wait and see, it could happen in a heart beat! Better check to see if FOOD STAMPS can pay for restaurant steaks because with the current Molalla demographics food stamps are going to be the “money” of choice! Here’s a couple of quick read paragraphs about the future of house building/sales:
“New home sales in May dropped 33 percent to the slowest pace in the 47 years records have been kept. The number of buyers who signed contracts to purchase previously occupied homes tumbled 30 percent in May. The drop-off came immediately after the tax incentives to sign a contract on a home ended on April 30.
Even if homebuilders keep construction to a minimum, it could be three years before the supply of housing comes into balance with demand, said Paul Dales, U.S. economist for Capital Economics.”
So keep on stuffin’ it in, Potter and Clarke! The SECTION 8 folks are always looking for a new ghetto to settle in – they can’t be worried about aesthetics or niceties like parks and good roads. When are we breaking ground on the Hart Street SECTION 8 project – isn’t it long overdue? And when’s the Floragon memorial pollution site coming on-line – got any takers for that eye sore yet? And what good old boy will get the steak house nod with public give aways?
Read on for the full article (quote):
By ALAN ZIBEL | 07/19/10
WASHINGTON – Homebuilders are feeling increasingly pessimistic about their industry, more evidence that the economic recovery is slowing.
The National Association of Home Builders said Monday that its monthly reading of builders’ sentiment about the housing market sank to 14 — the lowest level since March 2009. Readings below 50 indicate negative sentiment about the market.
The weak job market and an increasing number of foreclosed properties have prompted builders to limit construction of new homes. A modest revival in sales over the past year ended in May after federal tax credits expired at the end of April.
Conditions are not likely to improve soon. Reports this week on new home construction and previously owned home sales in June are expected to show the housing market remains deeply hobbled. An update on the Obama administration’s effort to help those in danger of losing their homes is also expected Tuesday.
While the overall economy appears unlikely to fall back into recession, many analysts expect housing to struggle for some time.
“With growth slumping again, and unemployment hovering near the double digits, we simply don’t have the necessary ingredients for a sustainable recovery in housing,” said Mike Larson, real estate and interest rate analyst at Weiss Research.
Builders have sharply scaled back construction in the face of a severe housing market bust. The number of new homes up for sale in May fell to 213,000, the lowest level in nearly 40 years. And, at the current sales rate, it would take 8.5 months to exhaust that supply. In a healthy economy, new home inventory takes about six months to exhaust.
Five years ago, at the peak of the housing boom, there were about 460,000 unsold homes on the market. And because of the frenzied pace of sales, it would have taken a little more than four months to exhaust that supply.
In some ways, it could be good news that builders are scaling back. It means they won’t add to the supply of homes on the market and that could create more demand for the current stock.
But it won’t help the job market. Each new home built creates, on average, the equivalent of three jobs for a year and generates about $90,000 in taxes paid to local and federal authorities, according to the builders’ trade group. The impact appears in multiple industries, from makers of faucets and kitchen appliances to lumber yards.
New home sales in May dropped 33 percent to the slowest pace in the 47 years records have been kept. The number of buyers who signed contracts to purchase previously occupied homes tumbled 30 percent in May. The drop-off came immediately after the tax incentives to sign a contract on a home ended on April 30.
Still, the trade group’s latest survey of 502 residential builders nationwide suggests the market will remain sluggish for the rest of the year. The index is broken into three separate readings. Its index measuring expectations for the next six months fell one point to 21. Current sales conditions fell two points to 15 and foot traffic from prospective buyers sank to 10.
Even if homebuilders keep construction to a minimum, it could be three years before the supply of housing comes into balance with demand, said Paul Dales, U.S. economist for Capital Economics.