03-15-2010, 11:35 AM
I am amazed at how over priced houses still are in puna. In my area there is at least 1 REO house per street most are BRAND NEW, and atl east 2 or 3 homes also for sale. YET, somehow it is still more economical to clear and build on empty lots. there are 2 such builds going on in my general area now. I asked these guys why they were building than just buying up something else? "cause its cheaper"! Its amazing some of these older homes that are now REO are litterally not even worth the land they are on, since they are now a liability to the land itself, and cost more to demo than just to buy and clear land.
This is clear evidence that capital is still being miss allocated. the market has a long way to go before clearing. I really wonder what it will look like down at the bottom? and what will become of all of these massive amounts of vacant, abandoned houses.
This is clear evidence that capital is still being miss allocated. the market has a long way to go before clearing. I really wonder what it will look like down at the bottom? and what will become of all of these massive amounts of vacant, abandoned houses.