Sales Leveling Out, Lumber Prices Decreasing
Mahir Rasheed is a U.S. economist at Oxford Economics and he wrote that "Nearly 90% of the for-sale inventory in May was of homes where construction is ongoing or has not started, while 36% of homes already sold have not yet broken ground…"
There has been a smaller increase in the past year in home prices of new builds versus existing homes (18.1% versus 23.6%). This increased demand for new homes will keep homebuilder activity supported but will have a negative growth impact on existing homes trading hands. There has also been a decrease in lumber prices which should help builders mitigate cost pressures.
Now is the time to build and look for full guts that need everything done. With prices still inflated, this is how you will get the biggest bang for your buck!