Examples include a move-in ready home in Jacksonville, Florida on Zillow, where KB Homes just cut the price by $16k and will likely need to cut the price more into the future. Home Builders are hustling to cut prices because they know the Home Building Backlog is epic.
Data from the US Census Bureau shows that there are 839k Single-Family Homes actively Under Construction. Meanwhile, there were only 511k Annualized Home Sales in July. This is the first time in US History where significantly more homes are being built than sold. A sign that the 2022 Housing Crash is going to get even worse.
I was this firsthand driving around my neighborhood in Dallas. The new home developments had tons of Homes Under Construction and most of them were for For Sale. Indicating that when the builders finish these houses in the next 3-4 Months, the Inventory on the US Housing Market will surge even further.
And people are now catching onto this Home Building Glut and overall Housing Slowdown. 78% of Americans think the Housing Market is going to Crash soon. 63% of them want it to Crash. While 80% want to see a Correction. Meanwhile, Wall Street Real Estate Investors are dropping out of the Housing Market left and right (Starwood Capital, Opendoor, and Blackstone have all announced fewer purchases).
This collapse in real estate demand is resulting in Home Builders like Toll Brothers reporting an astounding 60% Decline in Contracts YoY.
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