The great flaw in the American housing market right now is pretty fundamental: too much supply, not enough demand. There are just way too many foreclosed and abandoned properties out there, which is making everything else tougher to sell.
So since they haven't been able to drive any new demand, some banks are doing the completely rational -- if kind of unbelievable -- thing and cutting their supply. In states like Ohio, banks are finding it's cheaper to tear houses down than to try and sell them...
Banks demolish foreclosed homes, raise eyebrows
Thursday, October 13, 2011