The Affordability Crisis - New Construction Inventory Surpasses October 2007

The affordability crisis continues and the media is starting to catch on.

In fact, shelter has become so expensive that now new construction homes are selling for less than existing homes.

New construction is being preferred by many buyers simply because they are offering large incentives from closings costs, upgrades, and rate buy-downs — anything to get shelter to be more affordable from a payment perspective — while trying to keep prices elevated.

Though it’s not enough — new construction single family inventory is skyrocketing and we now have more inventory than October 2007.

Meanwhile, pending sales are grinding down along the bottom, lower than the great financial crisis. Each month going into the end of the year we should see prices come down due to this elevated inventory.

This data is NOT to create fear, it is to acknowledge reality, pivot your business, and find the opportunity — of which there is MUCH. This is the type of market that develops the best real estate agents and investors for the next bull run. The key is being aware and making adjustments.

Explore all the data here: