Metrostudy, which tracks real-time inventory of new homes in 41 cities across the country, states in a recent Fortune Magazine article that there has been "an extraordinary reversal of the new-home glut that helped sink prices just a few years ago. In the 41 cities Metrostudy covers, a total of 78,000 houses are now either vacant and for sale, or under construction. That's less than one-fourth of the 343,000 units in those two categories at the peak of the frenzy in mid-2006, and well below the level of a decade ago. "If we had anything like normal levels of buying, those houses would sell in 2½ months," says Castleman. "We'd see an incredible shortage. And that's where we're heading."
The article also states that because of this inevitable shortage of new homes, new home prices will soon be on the rise, and housing is the most attractive asset class in America. Click here to read the article.
