contributes almost nothing to economic activity. The economic activity comes from new construction. It's the building, it's the labor, it's the ordering of new supplies. So even though the new home sale market is only about 10% of the volume, it's all of the economic activity. So we see a substantial decline in the volume of new home sales. We're starting to see a decline in building permits. I have a question just there again for my own interest here. The decline in volume is a way of understanding what that means. Does that suggest that buyers are not getting the price they want and so they're pulling there, they're not necessarily transacting at those prices. So there's a period of time that sellers or buyers need to get comfortable with the new pricing dynamics in the market. Is that what that reflects? So it can reflect a lot of different things. It could reflect buyer hesitation because prices have increased too high. So they've sort of hit their threshold of we can't afford (35/57)
You are viewing a single comment's thread from: