This is a national look at monthly new residential construction, broken down into the four stages of construction. Building permits and housing starts are the leading indicators that tell us where the market is headed. On the bottom, under construction and housing units completed are the lagging indicators of what’s happened so far. The leading indicators, the two at the top, permits, and starts are slowing down from May to June. Builders are concerned and very gun shy of rising mortgage rates. Builders are not going to overbuild. We’re not going to get started on more homes than we know we can complete. They’re being cautious right now, so while we’ve had 14 years of undersupply of newly constructed homes built in this country, they’re not going to overbuild at this time.
Novella Real Estate