[quote=The-Shoveler]I am not saying that home prices are not silly right now but I will say they are not and have not been building near enough homes.
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Inventory is indeed low, but that’s a function of how many people want to sell and how many want to buy at any given time, not necessarily of how much new building is taking place, or of overall housing supply. For example, inventory was very low during the bubble, despite lots of new construction/rapid expansion of housing supply, and then it was very high in the bust despite zero new construction.
It may be true that new building isn’t keeping up with population growth (I don’t know one way or the other, offhand), but current level of inventory for sale isn’t really a good indicator of that, is my point. To determine this you’d have to look at population growth compared to housing supply… SANDAG probably has that info. Might be interesting to look into.
