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U.S. Housing Starts Drop In August–A Glimpse of Green
I love to grow bamboo. One of the things I love most is discovering a thick new shoot emerging from the dead leaves beneath one of my large plants. The new shoots can be as big around as a woman’s forearm.
Today’s reported drop in new home starts for August—the biggest decline in a dozen years—struck me the same way, like spotting a sturdy green shoot poke out the dry real estate landscape. This is perhaps the best news I’ve heard recently, better than the Fed’s half point cut, and it’s the first clear indication that the supply of homes may begin the retreat toward equilibrium with demand.
Last November I reported on the Sacramento Region Housing Forecast during which Harry Elliott of Elliott Homes blasted the publicly traded home builders for continuing to pour inventory into an already home-heavy market. Even those “publics” are now beginning to put their projects on ice, having apparently grown weary of slitting each others throats over the few remaining buyers.
The full effect will take time, but it’s a sign of new growth, a step in the right direction. Better times are ahead. The faster values fall, the quicker they will hit bottom. When they do, watch out.
Are you ready to buy? Call or email me to get pre-approved.