The national news this morning that housing starts are down 10.2% is great – from a long-term. If demand is moderating, then adding to existing inventory is foolish. Builders are suffering, but the wider housing economy will benefit by this reduction in adding inventory.
The market needs to work its way through the excess inventory. Not adding to that pile is a good start. In the Charlottesville region, there are nearly nine months of inventory –
Even with the declines in permits and starts, this report shows builders are still starting too many projects. Starts will probably continue to decline in coming months.
Finally, you’ve gotta love the Economist.