Dallas Home Builders Cut Starts in 2007

According to statistics from Dallas-based Residential Strategies, the top 10 home builder in volume cut new home construction in the Dallas area by 40% compared to 2006 new home construction numbers. A lot of people are reporting this as a really bad thing and yes, there were a lot of people negatively affected by this reduction. A lot of these new home builders not only cut new home construction but also cut personnel.

Truth be told, home builders got themselves into that position. Apparently, for the sake of growth and competition, they conveniently forgot about measured growth and how flooding the market with new homes will affect mortgages, resale homes and foreclosure rates. Now, I am NOT saying all of the problems in our current economy are the fault of builders. I am merely saying they didn’t help any… or rather, they did help but not in a good way.

Believe it or not, those cuts, however harsh were necessary in leveling out our housing market. By cutting starts, new home inventory has a chance to get back to normal levels allowing for the following GOOD things happen:
(more…)