Comments on: Pulte Homes Closing the Door on 1,900 Workers http://www.ere.net/2007/05/31/pulte-homes-closing-the-door-on-1900-workers/ Recruiting News, Recruiting Events, Recruiting Community, Social Recruiting Tue, 14 Feb 2012 01:03:49 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: David Rees http://www.ere.net/2007/05/31/pulte-homes-closing-the-door-on-1900-workers/comment-page-1/#comment-2819 David Rees Mon, 04 Jun 2007 03:09:00 +0000 http://www.ere.net/2007/05/31/pulte-homes-closing-the-door-on-1900-workers/#comment-2819 As the bubble deflates on the West Coast, these types of moves will become more common. As speculative buyers who got in high on a 2 years fixed load with a balloon payment or a conversion to an ARM find that the home they bought at 500k is now worth 420k (or less) and they are not able to refinance, foreclosure will increase inventory while decreasing demand and will accelerate the "correction" of the real estate market. What is even more alarming is what could happen to consumer spending - much of it has been driven by the "free equity" generated in the madness of the last 7 years of price run-up that people thought could go on indefinitely. As the bubble deflates on the West Coast, these types of moves will become more common.

As speculative buyers who got in high on a 2 years fixed load with a balloon payment or a conversion to an ARM find that the home they bought at 500k is now worth 420k (or less) and they are not able to refinance, foreclosure will increase inventory while decreasing demand and will accelerate the “correction” of the real estate market.

What is even more alarming is what could happen to consumer spending – much of it has been driven by the “free equity” generated in the madness of the last 7 years of price run-up that people thought could go on indefinitely.

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