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28 April, 2008 06:10:00
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Vacant homes for sale hit a record high


Government report says 2.9% of U.S. homes up for sale were vacant in the first quarter.


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WASHINGTON (AP) -- The percentage of vacant homes for sale in the United States set a new record high in the first quarter of this year, the government said Monday.

The Census Bureau report shows that shows that 2.9% of U.S. homes -- excluding rental properties -- were vacant and up for sale, compared with 2.8% in the fourth quarter of 2007. It was the highest quarterly number in records going back to 1956.

That works out to 2.28 million properties, up from 2.18 million in the same quarter last year, according to the report.

The West had the biggest gain in vacancy rates among homeowners, rising to 7% in the January-March period from 6.5% in the fourth quarter of 2007. Vacancy rates fell in the Midwest and South, but rose in the Northeast. The national vacancy rate, including new and existing homes, has been steadily rising since mid-2005.

Global Insight economist Patrick Newport called the report "worrisome."

"The inventory problem has not gotten any better," Newport said. Although glut-fighting homebuilders have reined in construction, "they still will have to cut back more."

The Census Bureau's report also said that the U.S. homeownership rate remained at 67.8% in the first quarter, down from a peak of 69.2% at the end of 2004

Comments (1 posted):

Barbara Feldman on 30 April, 2008 12:46:34
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In our area (the "Hamptons," admittedly a high end resort community) the glut of vacant houses on the market is being mitigated somewhat by those sellers with forsight who have begun to offer their houses furnished. This gives "added value" to the house, and is a relatively small investment when compared with the return and the cost of the properties.

As a designer of 35 years who has been retained to decorate many vacant houses in such a way that they appeal to the broad high end market, I have seen eight of the eleven houses I designed sell in the last year.

I am amazed, however, that developers continue to build when some of them are holding upwards of five (and as many as 15) houses at astronomical carrying costs. And, some of these builders still refuse to acknowledge that the market has changed; there are still buyers, but those who are purchasing want more for their money than another fancy stove in the kitchen or marble in the bathroom.

Lower the inflated prices, give more for the money, and, in my opinion, many of these houses will start to move.

Barbara Feldman

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