In this mornings news I read a few snippets about how the stock markets were reacting to the drop in new housing starts. The reduction in new building permits & related activity is attributed to rising costs of material, and scarcity of both materials and labor.

One inference I'm drawing is that the builders would build if they had the materials and labor. Another inference I'm drawing is that the builders believe that their finished product has ready buyers if they could build.

I assume this means that prices on existing housing inventory will rise even further, but I'm so often wrong that I thought I should ask for the OT wisdom.

My thoughts, you can only be a records for so long before it slows down. Wood dropped significantly, but many other things are really high still: steel, copper, some flooring and labor is insane. Still quite a bit of building going on down here, not sure if that’s good or bad. I don’t see used houses getting cheaper, until interest rates go up and the market flops.

I don't see it slowing down and prices just seem to keep climbing. All I see is houses being built and built in Frisco, Celina, Prosper, etc.

Building material for residential have been up for at least a year, maybe more. They are coming back down, so I don't see that or scarcity being a driver. I also don't see labor being a driver, as we aren't exporting the undocumented. I suspect the market is starting to soften after a period of historically high demand.

I think you're on point about housing going higher as starts slow down.

Existing home sales can only go up if new home construction slows down. My quote on 40X40 metal building material costs went up another 10% from May until now. That sure the heck hasn't softened any. Finally, starting construction this weekend. Pay the piper and move on little doggie.

Every time I look at Zillow the prices are higher.

They will keep on increasing until they get close to California prices is my prediction.

I'm in the mortgage business and we are blowing and going.

Prices are going up.

My advice is to buy a house with as much cash as you can on a 30-year note, without putting yourself in a financial bind in the event worst case scenario occurs, and that is the bubble pops, you lose employment, and can no longer afford the payments. In other words, build and preserve a significant cash reserve in case it is needed.

My new home will be finished in April in Williamson Co,TN.I could make 50-70 thousand reselling it.No sighn of a slow down here in TN.

As long as corporations continue to move here and the current conditions stay the same I wouldn’t think home prices are going down anytime soon. I bought a house to flip last summer. Just got around to selling it this month and it brought 40k more than I was hoping for a year ago. Holding in this case paid off. It’s crazy out there in the investor world. People are bidding up very distressed homes to the point of no profit seemingly. I’m just going to go with the flow and see what happens

My son in law sells new homes he said they will gladly let you out of your contract because they can sell the house very quickly for 20-30 thousand more than you contracted it for. Also waiting on windows,doors,HVAC and appliances. Also thanks to Senile Joe labor is at a premium.

It's crazy.

You talking DFW, Houston, Austin, SA, Dalhart, or Picher, OK? My guess it looks different in every market. I know the last one in the list is not hopping, but you should be able to buy, develop, and build very cheaply there..

I give it another 6 months to a yr. till the crash comes, typical cycle for construction/homes.

now you have all the corporate moves driving prices up and new construction as well. once people get settled in and the full affect of inflation hits them I think prices will take a nosedive due to a new glut in preowned.

that is the way it has been and will be.