Supply-Demand Balance Is Improving in New-Home Market

 

Surveys of builders suggest that the beginnings of recovery in housing demand are underway.

The massive cutbacks in single-family starts since early 2006, particularly in the for-sale component of the market, have resulted in substantial reductions in the overhang of new homes for sale from the highs of 2006 to 2007. The months?EUR??,,????'??? supply is still on the high side ?EUR??,,????'??+ 10.7 in March ?EUR??,,????'??+ but that number is subject to substantial decline as sales move up from the record low posted at the beginning of this year.

There are fairly convincing signs that sales of both new and existing single-family homes hit bottom in the first quarter of this year and surveys of builders suggest that the beginnings of recovery in housing demand are underway. ?EUR??,,????'??? Courtesy of NAHB