“New” New Home Inventory ??

The peak for home sales was at 4.5 million units in 2007.  In 2012, there were roughly 2.5 million units available, while we have seen a 10 percent increase in demand.  New home starts this year has run at about 700,000 which is 50% of the normal numbers over the last 50 years (annualized).  In 2013, we may see a 70% jump in new home starts, providing buyers with more choices among resale homes, distressed properties (short sales and foreclosures) and new construction.  Projections say that the total number of homes available will still be about 300,000 below normal (annualized) levels, so we are looking for a seller’s market through 2013.  As to the effect on home prices, we all shall see.