Homebuilder online, August 2007, calls the housing boom a house of cards.
The Commerce Department said in March that the number of vacant, privately owned homes had reached its highest peak in the nation's history. And through the first half of this year, there were, conservatively, at least 500,000 mortgage defaults, including notices of foreclosure, auction sales, or bank repossessions, according to various estimates. So the last thing that builders—already in the throes of a downturn that seems to get worse every month—need right now is a new flood of foreclosed homes cascading onto a market where finding willing buyers has become a snipe hunt.
It might be too late to dam that flood, however, at least in the short run.