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Wednesday, June 21, 2017

Problem Plaguing New Construction

The Supply & Demand Problem Plaguing New Construction... We have discussed the law of supply and demand in previous posts. Those posts examined the housing market by looking at completed homes available to purchase - or previously owned homes. Today we will examine the law of supply and demand on new construction. There are 4 L's involved - let's look at the 3 specific to new construction. Lots - to build on. Labor to build. And, finally, Lumber to use in construction. Builders are wrestling with all three of those issues. As solutions are found more homes can be built and become available for purchase. How long will it take to balance supply and demand - uncertain. That shortage influences prices on existing homes. The 4th L is lending. It is no secret that following the crash many restraints were placed upon lending. It was very difficult to get a mortgage. We see that lightening up somewhat now and opportunities are increasing. For more information, have a look at today's article. If you would like to talk about opportunities for you, cal me - Al