Home Sales Decline II: Almost Prozac Time

Talking to some of my sources today, we are definitely seeing a softening in our local market. Blame 5 states for the credit crunch: Michigan, Nevada, Arizona, Florida and California. (In fact, maybe they should just secede from the Union — our market might be a whole lot rosier.) And would the spec builders just please put down their hammers? The problem, I hear, is that inventory is moving but every time you blink someone is breaking ground on yet another spec home. Most overbuilt? The one to three million dollar home category. Couple this with 2.5 million ARMs adjusting this year and experts expecting most of those to go bad. What can I say — it’s Prozac time.