Here’s the other side of the coin…..we’ve been in a building boom for about 5 years. New home sales have cut into resales ALOT! The reduction corresponds to about 10,000 less new homes being permitted over the next 12 months if the trend continues. There is a lag in these homes coming to market so they probably would be 2007 new home sales. The MLS shows that there were 41,171 sales of attached and detached homes for 2005 (the last full year of data). A 25% decrease in new inventory would help the resale market and aid in a soft landing. Resales volume will go back up and Home Depot will be busier than ever as people remodel the 25 year old home they just bought. The Granite Guy will buy a new Ferrari and his wife will get a new set of boobs! Not sure if this will happen but you need to look at both sides to be fair.
