We just learned the strange disconnection between home sales, home prices going down and the last home starts going up.
Is that good news? I think those are bad news, because it seems to me that this shows how home builders are trying to postpone addressing pending problems.
The banks are usually lending money to builders in connection with new home starts. The home is considered started if you put a shovel and a portable toilet on it. That will secure a $500k credit.
What to do if you need $10 million? You need 20 shovels and 20 portable toilets, that’s it.