Homebuilder WARNING: "Projects are Cancelled. No More Buyers"

TL;DR

Home builders are experiencing a significant decline in buyer traffic, resulting in unfinished projects and a struggling housing market. This trend is expected to worsen, creating opportunities for buyers with more deals and inventory available.

Transcript

home builders have started to abandon projects and leave homes unfinished across america because quite simply there are no more buyers data from the national association of home builders is reporting get this folks an astounding 50 percent decline in home buyer traffic for new home builders over the last six months this means that the slowdown in t... Read More

Key Insights

• 🥺 Home builders are facing a 50% decline in buyer traffic, leading to unfinished projects and price cuts on new construction listings.
• 👪 The surge in home construction over the past two years has resulted in an unprecedented increase in inventory, with over 850,000 single-family homes under construction.
• 👪 The decline in home buyer traffic suggests a worsening housing market in the coming months, with more inventory and potential discounts available for buyers.
• 👶 Cities like Boise, Idaho, are at the forefront of the home builder crash, with over 53% of new construction listings already having price cuts.
• 🥳 Claims of a structural shortage of homes in America are debunked, as demographic fundamentals and employment data show a stable ratio of people to housing units.
• 😘 The recent temporary shortage was primarily caused by government interventions and low interest rates, which are now reversing due to economic factors.
• 🥺 Apartment construction is also at an all-time high, leading to a potential crash in the rental market with declining rents and an eviction crisis unfolding.

Questions & Answers

Q: Why are home builders abandoning projects and leaving homes unfinished?

Home builders are facing a drastic decline in buyer traffic, making it challenging to sell their homes. With fewer buyers, these builders are getting increasingly desperate to offload their inventory and are resorting to price cuts.

Q: How is the slowdown in the housing market expected to impact future home sales?

The decline in buyer traffic now suggests that home sales and housing demand in the next three months will continue to decline further, leading to a much worse housing market in fall 2022. This presents a favorable opportunity for buyers to find more deals and inventory.

Q: Which cities are most affected by the home builder crash?

Boise, Idaho, stands out as one of the cities with the biggest home builder crash. Over 53% of new construction listings in Boise already have price cuts, making it one of the top housing bubbles in America and expected to experience around a 30% decline in property values.

Q: Is there a structural shortage of homes in America?

Contrary to popular belief, there is no structural shortage of homes in America. The temporary shortage experienced in recent years was largely due to government interventions, such as foreclosure and eviction bans, and low interest rates. The current economic downturn and increasing interest rates are expected to bring a return to normal, or possibly even a decline in housing supply.

Key Insights:

• Home builders are facing a 50% decline in buyer traffic, leading to unfinished projects and price cuts on new construction listings.
• The surge in home construction over the past two years has resulted in an unprecedented increase in inventory, with over 850,000 single-family homes under construction.
• The decline in home buyer traffic suggests a worsening housing market in the coming months, with more inventory and potential discounts available for buyers.
• Cities like Boise, Idaho, are at the forefront of the home builder crash, with over 53% of new construction listings already having price cuts.
• Claims of a structural shortage of homes in America are debunked, as demographic fundamentals and employment data show a stable ratio of people to housing units.
• The recent temporary shortage was primarily caused by government interventions and low interest rates, which are now reversing due to economic factors.
• Apartment construction is also at an all-time high, leading to a potential crash in the rental market with declining rents and an eviction crisis unfolding.
• The housing market crash and home builder struggles historically coincide with economic recessions, indicating the possibility of an upcoming economic downturn.

Summary & Key Takeaways

• Home builders across America are facing a 50% decline in buyer traffic over the past six months, leading to unfinished projects and a slowdown in the housing market.

• The surge in home construction in the last two years has contributed to a significant increase in inventory, with over 850,000 single-family homes actively under construction.

• Cities like Boise, Idaho, are expected to experience a severe housing market crash, with over 53% of new construction listings already having price cuts.