New Home Permits and Starts Are Down in Denver

According to the U.S. Census Bureau through August, new single-family home permits in the metro Denver area are down 7% year over year. While new residential starts which includes both single-family and multi-family are only down 3% year over year. It's good to see that starts and permits are both down small amounts; but this tells me that the new home market will NOT be helping the existing real estate market by adding additional inventory. Thus, I expect existing home inventory will remain incredibly tight or even get worse, which means home price appreciation of 8% or more for many months ahead.