Foreclosures vs New Home Sales

This morning Inman News predicted 8 months worth of foreclosure inventory across the US, in the meantime according to a special study by economists at the National Association of Home Builders, annual single-family housing production fell about one million units short of the housing that would be needed in a normally functioning economy.

Wow, no new construction, huh?

In 2003 through 2006 builders couldn’t stop building, large McMansions were put up and then sold like hot cakes.  Once the market went South, we have seen four years of slow construction of new home sales and this year is likely to add to the deficit of single-family homes by another one million units.

The National Association of Home Builders expects pent-up demand for housing to peak at some point and push single-family production in a positive direction.

It will be interesting to see what will happen when the foreclosures burn off and there is a return to traditional sales, we’ll then be underbuilt.  Keep tuned to see what happens with foreclosures!