Builders are running (not walking) away from land options right now in a big way. Does that sound like an undersupply situation to you? It surely doesn’t sound like that to me.
What’s irrational is the idea that homes have to be built in large developments. There are tons of infil development potential, and long after that’s gone there will be redevelopment opportunities. We’re much more likely to run out of meaningful employment than developable lots. Take a look around. We already don’t have enough local employment resources to support the existing housing inventory, let alone future development. That’s why the market is correcting right now.
Our sales volume is declining at the same time our must-sell inventory is increasing. Whatever changes occur over the next 24 months will more likely jibe with the expectations of the bears than the bulls.
