Rising SF Vacancies Leave 'Huge Overhang'

The number of vacant single-family homes for sale rose 3.8% in the first quarter, leaving a huge overhang of 2.2 million vacant homes on the market in the middle of the spring selling session, according to a Census Bureau report.The report indicates that the number of single-family vacancies rose from 2.10 in the fourth quarter to 2.18 million in first quarter, after jumping 37.9% over the previous four quarters. Last year, new home construction combined with active selling by investors created a huge inventory of the unsold vacant homes. This spring, homebuilders have cut back on starts. But the National Association of Home Builders said it is concerned that rising foreclosures could increase the supply of vacant homes. NAHB senior economist Bernard Markstein said he expects the second-quarter report to show an increase in vacant homes, but not a significant increase. The Census Bureau report also shows that the homeownership rate dipped to 68.4% in the first quarter from 68.9% in the fourth quarter.