Busy Time for Builders
The stats are in for March building permits, and they are really surprising. 45 permits were issued for single family construction in Billings. Only 2001 and 2005 saw higher numbers for March in the last decade.
Even when you count the generally busier summer months, March 2010 was the best month since clear back to May 2007. Housing starts are generally an indicator of a healthy housing market. So what's the problem? Here it is:
For this early in the year, single family home inventory is higher than it's ever been since I started tracking. Building new houses is fine when we need them. But as I've stated before, the $8,000 Homebuyer Tax Credit seemed to spur new construction when I think we already have too many houses.
If sales really sag after the tax credit expires later this spring, prices could really take a dive due to the oversupply of houses.
http://www.hotel-online.com/News/PR2008_1st/Mar08_RedLodge.html
http://ofcourservresort.com/index.php
http://billingsgazette.com/news/state-and-regional/montana/article_55cf3a54-0ba1-11df-898e-001cc4c002e0.html
I really could go on.....this stinks of a completely unsustainable development. I for one will stay far away from Red Lodge real estate.
Steven,
Yes, I agree that it does appear to be unsustainable. Did you see my prior post on it?
Of Course RV Resort
Builders build. They cannot help themselves.
3 of the largest builders and their banker(one of which has large loan performance issues), their media pros and broker alliances have teamed up on some serious marketing and declared:
!!!!The Recession is OVER!.
I am sorry I don't have a link to their new TV commercials.
I should have said in Missoula.