The supply of newly-built homes fell to its lowest levels since 2006, offering additional proof of a housing market in recovery.
Home supply is defined as the amount of time it would take to sell the current inventory of homes at the current pace of sales.
In October, for the 8th consecutive month, home supplies fell. Since peaking in January 2009, it's now down by almost half.
Lower supply leads to higher prices. This is Economics 101.
Furthermore, supply is expected fall into 2010. According to the government, builders are breaking ground on new homes at a declining pace, even as sales ramp up.
Builders are cheering the October New Home Sales report, but its the everyday sellers of "existing homes" that have real reason to celebrate.
See,......
Read the COMPLETE BLOG POST HERE:
New Home Supplies Plummet, Pressuring Home Prices Higher
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Chris is Florida's #1 FHA Mortgage Broker and a syndicated mortgage blogger. He is regular contributor to the three leading industry blog-fronts including The Mortgage Chili Blog, My FHA Mortgage Blog, Top of Mind Networks, the newest contributor to Lenderama and recently featured on Fox35 News.
Chris can be found at
Orlando FHA Loans,
Chris[at]OrlandoMortgagePro[dot]com,
or by calling 407.377.0500 x 210
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