This Week In Real Estate: Video Roundup
With home prices sliding in many markets, high inventories and homes sitting a long time on the market, you'd think homebuilders would be putting up as few houses as possible.
Well, not exactly. As Jane Wells reports, in the central valley of California, houses are going up at a healthy pace. In one Standard Pacific development of so-called spec homes Wells visited, she saw just one "For Sale" sign.
It appears spec homes are common practice in the industry. For instance, major builder DR Horton -- which saw third-quarter sales orders plummet -- says half of its home under construction are done on spec. Though builders often wind up slicing the price of such spec homes, its easier to sell a property with a house on it than an empty lot and builders are always looking to get land off their books.
U.S. home foreclosures fell in June after jumping to a 30-month peak in May, but default rates will escalate in the future, real estate data firm RealtyTrac said Thursday.
Foreclosure filings declined 7% but remain 87% above last June's pace, with one filing for every 704 households, the company said.
Activity is expected to spike as the year progresses, because of the thousands of adjustable-rate mortgages that will have to be refinanced, which will mean higher monthly payments for the borrowers.