Report: Low inventories could cause shortage of new homes

New home prices could rise in the coming months.While the sales and prices of new homes have continued to struggle, Fortune says that may soon change, as a relative shortage of homes will lead to quickly rising prices for those looking to purchase newly built Houston properties.Fortune says according to data from Metrostudy, which covers 41 major cities nationwide, there are 78,000 new homes that are under construction or vacant and for sale. That's well below the more than 340,000 that existed during the housing boom, and below past levels as well.If sales pick up as the economy grows, then analysts say the current supply may not be able to meet demand from buyers looking to avoid foreclosures or existing homes.”If we had anything like normal levels of buying, those houses would sell in two and a half months,” Mike Castleman, CEO and founder of Metrostudy, told the source. “We'd see an incredible shortage. And that's where we're heading.”However, those sales have yet to pick up on a national level. Data from the Commerce Department showed sales of new homes in February had reached the slowest pace ever recorded.Courtesy of 2M Realty News

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