Housing starts nationally are way down. In spite of the number of distressed sales taking place, the continuing climb in population seems likely to lead us back to the same old housing crisis. Check out this article from Lawrence Yun, Chief Economist for the National Association of Realtors.
This is no truer than in San Francisco. The limited number of new construction projects has come to a grinding halt. Once the projects that were initiated in 2007 and 2008 finally get finished I suspect that the next wave of new home buyers may be faced with a drought that will last for years.
If the idea of developer sellers being in the driver’s seat seems foreign to us today, get ready. The days of developers controlling the terms of their highly sought after sales may be just around the corner!