Orange County builders? inventory at 12-year high: 1,022 unsold new homes

In process, unfinished homes: zzzzzzzzzzzzzzzzzz

Standing Inventory? YOW

If the under contract number stagnate for close to finished homes, any buyer who is ready, willing, and able to close at the builders FYE will likely get an amazing deal if they can close before Dec 31st.
 
Hopefully this means the rate of price increases will slow. As a move-up buyer, the high prices have been disappointing and I love seeing that we're running out of buyers willing to pay ever increasing prices.
 
paperboyNC said:
... I love seeing that we're running out of buyers willing to pay ever increasing prices.
Click to expand...
Where do you get that from the article?  It state homes are at a high but new home sales are up 16% as well so that doesn't mean they are running out of buyers willing to pay it would actually mean the opposite.
 
IrvineBug22 said:
Where do you get that from the article?  It state homes are at a high but new home sales are up 16% as well so that doesn't mean they are running out of buyers willing to pay it would actually mean the opposite.
Click to expand...

Overall home sales are declining as prices increase.

This is Economics 101: Demand is greater at lower prices.
 
paperboyNC said:
IrvineBug22 said:
Where do you get that from the article?  It state homes are at a high but new home sales are up 16% as well so that doesn't mean they are running out of buyers willing to pay it would actually mean the opposite.
Click to expand...

Overall home sales are declining as prices increase.

This is Economics 101: Demand is greater at lower prices.
Click to expand...

I am getting calls from a handful of Irvine builders letting me know that they have bumped up their broker co-ops but most all of them have been for homes over $1m. 
 
paperboyNC said:
IrvineBug22 said:
Where do you get that from the article?  It state homes are at a high but new home sales are up 16% as well so that doesn't mean they are running out of buyers willing to pay it would actually mean the opposite.
Click to expand...

Overall home sales are declining as prices increase.

This is Economics 101: Demand is greater at lower prices.
Click to expand...

You would think this is the case, but for real estate higher prices typically cause MORE demand.  It sounds counter intuitive, but it's because everybody gets caught up in the fear of missing out.  Sales are always lowest when prices are lowest, like in 2009-2011.  When prices are going up 15-20% per year (typically near the end of a cycle), sales are at their highest.

The thing that brings it to an end is not usually lack of demand due to higher prices, but external forces like job losses and tightening credit standards.  Currently we have rates increasing and perceived tax increases putting a squeeze on people's desire to buy.
 
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