Glut: 2.3 million vacant houses for sale in U.S.A.

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Breaking news from the Census Bureau: The number of vacant homes for sale in the United States inched up to 2.3 million in the first quarter, the highest level ever measured, and an ominous sign for home-sellers and home builders.

From Reuters: ‘The share of vacant U.S. homes rose to a record level in the first quarter, the government reported on Monday, with homeowners finding it increasingly difficult to find buyers in a collapsed market and more homes in foreclosure.’

From the AP: ‘Global Insight economist Patrick Newport called the report ‘worrisome.’ ‘The inventory problem has not gotten any better,’ Newport said. Although glut-fighting home builders have reined in construction, ‘They still will have to cut back more.’’

The number of vacant, for-sale homes has been rising steadily for five years, climbing from 1.2 million in the first quarter of 2003 to 2.3 million in the first quarter of this year. The percentage of homes that are vacant and for sale has also been rising, from a recent low of 1.5% in 2001, to 2.9% in the first quarter. Those percentages do not include homes for rent.

Federal Reserve Chairman Ben Bernanke has warned that the current surge in foreclosures threatens to add more inventory to an already crowded market. In a speech in March, he said, ‘At the national level, the rise in expected foreclosures could add significantly to the inventory of vacant unsold homes--already at more than 2 million units at the end of 2007--putting further pressure on house prices and housing construction.’

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Photo: New houses scheduled to be auctioned in Gardena.