Why are people surprised when building starts come in lower than expected???

I have said it in a previous post or two but we need to sell the houses we built and stop building new ones. The way out of this mess is to chew through the inventory of homes we built over the last couple of years.

I don’t know the exact numbers but I can tell you we built several hundred thousand houses we didn’t need. The easy financing made them easy to sell so we built them. But now we have to pay the bill for those homes. We can either sell them slowly or knock them all down and start over.

It is a simple equation. The supply is greater than demand so don’t build more spec homes.

Good Investing