The fastest way out of a shortage of available homes for sale is building more new homes. That’s why new home construction ramped up over the past several years. There were too few homes for sale to satisfy the number of interested buyers and building was the best way out of the problem. Now, though, the tables may have turned. Buyer demand has slowed and the number of available new homes for sale is high. That’s causing residential construction to stall. In fact, according to the latest numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, single-family housing starts fell 7 percent month-over-month in August, with new housing projects down 17 percent in the South – where new home inventory is highest. But while the news isn’t good for home builders, it may be for buyers, who could benefit from better deals on new homes as builders attempt to sell the available supply. (source)
