New Housing Supply Expected To Increase
A new surge of new housing supply has been forecasted and it could mean trouble for some mortgage investors. According to Bloomberg, single-family housings starts are on an annualized pace of 919,000.
"While well above the millennium-low of 353,000 seen in March of 2009, it remains below the 956,000 average seen since 1999," according to the report.
"Single-family starts have dropped about 33 percent this millennium, even though the U.S. population has grown about 17 percent to around 327 million people over that time."
The report cites the continuously weakening value of the U.S. dollar, in terms of residential real estate, as the reason for the lack of single-family starts.
"Home prices since 1999 have increased by about 118%, according to the S&P CoreLogic Case-Shiller 20-City home price index, or, to put it another way, the value of the U.S. dollar versus housing has dropped to 46 cents over that time frame," according to Bloomberg.
To learn more about the surge in housing supply and how it may affect mortgage investors, click on the image above.
