DCM

The Home Start Numbers Are Not a Positive

With the exception of possibly a very few number of markets, adding more units of any type will only exacerbate an already certain protracted downturn in real estate. A positive sign would be a significant percentage increase in the number of first home buyers. Thanks to Economics 101, we all know price is a function of supply and demand. In most markets, supply far outweighs demand. If builders and lenders were not so greedy in the last 5 years or so, we would not be in this mess. Please tell me what lesson has been learned when apparently lenders continue to loan money to builders to create more housing? Indeed, the home start numbers are not a positive!!!