Home Builder’s Breaking RECORDS as 2009 Style Recession Gets Priced In Inventory Coming on Housing Market
The US economy is now heading toward a 2009 style recession according to Bank of America, and the banking crisis is now back in full throttle. Which means as the banking sector continues to be put under more and more stress, lending will continue to get tighter and tighter. We are already seeing lending standards tighten to the same levels we saw back in 2012, and the speed at which banks are limiting credit availability is accelerating faster than it did following the great financial crisis.
With all of this banking turmoil unfolding, the funny thing is the first sector of the economy we'd expect to begin slowing is not, the construction sector, home builders in particular. New data now shows construction employment is at record highs, and construction spending is also at record highs. We dive into this data and highlight the reasoning behind this, how these large public home building companies are using this brief window, where banks are still lending, to take advantage of the opportunity, and to try and get the huge number of houses currently under construction completed.
We also dive into where these 1.7 million homes under construction are located, which markets we can expect to see a surge in active listings over the next few quarters. As well as where home builders are turning their attention to next, by analyzing single family building permits authorized along with multi family building permits authorized last month.
