New Construction Is Down! Great News!

The US Department of Housing and Urban Development reported housing starts dropped 33.1% compared to August 2007. The stock market reacted negatively but this is great news for the real estate market. As a Realtor I have seen new developments pop up in Windsor, South Windsor, East Windsor, Windsor Locks, Suffield, Granby, and East Granby. However, I kept wondering where all the people were going to come from. Well, as I learned in Economics 101, this is simply an issue of supply and demand. By lowering the housing starts, that means there is less competition for your house and therefore your increasing your value. This is great news, it means we are close to the bottom and things will improve.