New Housing Starts Sputter

Author:	Lucas Jones
Source:	Homes Discovered
Date:	November 27, 2006

New Housing starts have recently hit a six year low last month in Aspen.  This continuing trend is clear evidence that the downturn in the realty market will not right itself quickly.  Even in the South, which has been the strongest home building region, had the weakest month of any.  The slow housing starts may be a blessing in disguise for the real estate market. If builders are holding off on building new homes that means there are less homes for sale on the market.  Since there is already a surplus of homes available on the market, which are having problems selling, then the move by construction companies to hold off on building more helps those homes that have been unable to sell.  This makes for less homes for the low number of buyers to look at.  The large inventory of homes available in Snowmass keeps on pushing the value of homes down since buyers can get almost whatever they want.  This can help even out the trend and restore balance to the realty market.  Big builders have been aggravating the market difficulties by puting more homes on the market and it is a good sign that they are stopping. Still, it is going to be a while before the market balances out in Basalt.  Some projections point toward the middle of next year before the market levels.  Between now and then is a great time for someone thinking about buying a home to do so.  Even if you are not ready at least you have some time to think about it.  Home prices should continue to fall and it will remain a buyers market for the foreseeable future.

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