So why are homebuilders so sad?
In today’s dispatch:
- home prices hit an all time high
- strangely, no one wants to build new homes, and homebuilders are sad
- discounts everywhere, but not in the indexes
- the indexes are a little hazy, and that’s ok
Last week, you may have seen a headline like this:
Home prices hit a record high!
Home sales, however, continued to plummet. Presumably, home prices are so darn high, that sellers just can’t be convinced to sell.
Can you believe it?
Prices are so high that no one feels like building new homes
You might have also seen some data like this . . . building starts for both multifamily and single family have rolled over:
Single-family starts have joined multifamily on its downward slope.
I think the only reasonable inference is that home prices are so high, that no one wants to build houses either!
Prices are so high that builders are gloomy and offering discounts
Indeed, home prices are so high that homebuilders are becoming downright gloomy in their sentiment:
