Savvy Trades and Investments

[cliffvb]

whoswho, That article flies in the face of recent reports from home builders who say they cannot keep up with demand and have resorted to limiting sales by raising prices and rationing lots available for building. Some have also resorted to taking bids on new homes, the highest bidder gets the new house.

I was surprised to hear there is a 6.3 month supply of new homes on the market. But I also think that number is distorted by the fact that many builders list their homes for sale before they even start them. It will take 6 months or more to get those houses built. Many home buyers are unable or unwilling to wait that long. I'm sure the supply of completed new homes is much tighter.

Sales are not down because of reduced demand but because builders can't keep up with demand. I think the builders will enjoy good times and rising profits for at least a couple more years.