Everyone for a US housing market crash but the largest US homebuilder isn''t worried
Generals always fight the last war. That''s why as US economic weakness creeps in, so many people are predicting another housing collapse. There''s a long laundry list of why it won''t happen starting with houshold balance sheets and lending practices but it seems like everywhere I turn, someone is saying prices are about to crash. That doesn''t mean that some frothy markets like Austin or Miami (or Boise) won''t see some price depreciation as bidding wars end but it''s still a market that comes down to supply and demand. The US hasn''t been building nearly enough houses for a decade and millennials are at the peak home-buying time. In any case, there''s no need to take my word for it. The largest US home builder -- D.R. Horton -- lowered its sales forecast to 83,000 and 85,000 homes this year versus 88,000 and 90,000 previously so there''s certainly a drag but it came with this commetnary from CEO and President David Auld: There''s still more housing formations, job creations than there are homes being built.
Everyone for a US housing market crash but the largest US homebuilder isn''t worried
Generals always fight the last war. That''s why as US economic weakness creeps in, so many people are predicting another housing collapse. There''s a long laundry list of why it won''t happen starting with houshold balance sheets and lending practices but it seems like everywhere I turn, someone is saying prices are about to crash. That doesn''t mean that some frothy markets like Austin or Miami (or Boise) won''t see some price depreciation as bidding wars end but it''s still a market that comes down to supply and demand. The US hasn''t been building nearly enough houses for a decade and millennials are at the peak home-buying time. In any case, there''s no need to take my word for it. The largest US home builder -- D.R. Horton -- lowered its sales forecast to 83,000 and 85,000 homes this year versus 88,000 and 90,000 previously so there''s certainly a drag but it came with this commetnary from CEO and President David Auld: There''s still more housing formations, job creations than there are homes being built.