Getting Graphic is a semi-sort-of-irregular collection of our favorite BIG real estate-related chart(s).
Floyd Norris of the New York Times in this weekend’s paper had a great summary of the state of new home sales titled New Homes Turning Old as the Inventory Piles Up.
In normal times, the vast majority of new homes being offered for sale have not been completed, and deposits are put down well before houses are finished. But in March, builders were offering 189,000 houses that had been completed, nearly as many as the 201,000 unsold homes that were under construction. Those two figures have never been so close since the government began collecting that data in 1970.
Unlike the figures for existing homes on sale — some of them with owners who may decide not to sell — new homes on the market that have been completed are certainly available, and the financing costs facing the builder are growing with every week that passes while the homes sit unoccupied.
As said many times before, builders, build until they can’t build anymore. I think it is getting pretty close to that point. The natural ebb and flow of supply and demand. What’s wrong with fewer homes coming on the market?