If it feels like you’re seeing NAHB reports single-family permits are down in nearly every part of the country, with just one region showing a slight uptick. And even there, the growth is so small, it’s practically flat.
Why This Isn’t 2008 All Over Again
In the lead up to the crash, builders kept building long after demand had disappeared. This time, they’re slowing down early, and that’s a good thing.
The market actually needs more homes after years of underbuilding. But builders are making sure they don’t have to overcorrect. They’re being intentional about how many homes they’re building right now.
So yes, you’re seeing more new homes for sale today, but that doesn’t mean we’re oversupplied nationally. It means buyers finally have more options, and builders are pacing themselves to keep things in check. They’re not going to flood the market. And that’s a really good thing for housing overall.
Bottom Line
Seeing more new homes for sale doesn’t mean builders are overdoing it. Since building permits have been declining for eight straight months, it’s clear this isn’t an out-of-control boom. It’s a measured recovery.
If you want to know more about what builders are doing in your area, connect with a local agent.
