I read a story from Bloomberg News on how and why some home builders are actually SLOWING DOWN the construction of new homes. Why? Builders are struggling with supply shortages, surging lumber costs that have increased by nearly 150% in the past year, and intense competition for labor and land. Gene Myers, CEO of Thrive Home Builders here in Denver was quoted as saying, "It's smart business" to slow down sales currently.
Lennar Homes, our nation's largest builder said they are "Intentionally limiting sales to homes already under construction to avoid buying lumber at today's high prices."
Some other reasons why new home sales will slow is the incredible demand from current homeowners looking to remodel their current home. Also, the increased number of hurricanes and vast forest fires are destroying tens of thousands of homes.
Thus, I expect the supply of existing homes for sale will continue to drop pushing home prices higher and higher.