These numbers are small and the headline does not tell the story. Yes, building permits have increased but when you go from about zero, any little bit will make a difference. DR has added some low priced starter homes that and I suspect that much of the increased permits are these. Both DR and Pulte have done a good job adjusting to the market and have the financial backing to get through this market. Many of the smaller builders and custom builders are not building “specs” right now. They are trying to get rid of any inventory they have and are only building if pre sold. The thing is… you can buy existing homes for less that it would cost to build right now, especially when you look at custom and higher end homes. The good news is that homes are selling and eventually demand will catch up with the supply. Here is the story...
Rio Rancho home construction surges - New Mexico Business Weekly:: "Home building permits surged in February in Rio Rancho, lifting the entire Albuquerque-metro area to post a 54 percent increase over January’s permit numbers, according to publisher Jan DeMaggio’s Albuquerque New Housing Market Letter."
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