The Achilles heel of the U.S. housing market is undoubtedly the large number of unsold stock overhanging the system. According to the chart below (courtesy of Whitney Tilson’s T2 Partners via Clusterstock – Business Insider), more than 7 million homes are still weighing down the market due to bank repossessions or the loans being in delinquency. New defaults of approximately 300,000 per month are not included in this chart. Don’t hold your breath for a surge in consumption expenditure and economic growth while this situation remains so acute.
Source: Clusterstock – Business Insider, May 10, 2010.
