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Regular Visitor
GreenHead
Posts: 6
Registered: ‎01-15-2011
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What will it take to bring more inventory to market?At what point will they build more homes again?

I'd like to buy another house as I have one already rented out, but I rent myself and would like to buy one to live in with my gf. The houses around here my area(developing neighborhoods) are going for $150-200k on the newer homes, but they were much cheaper 6-12 months ago. Now, not only are they more expensive but there is almost no inventory. However, buying one at these prices is still cheaper than rent. I figure the breaking point around here for me is anything above $225k. I don't qualify for much since I already bought a home in 2009 but we still qualify for 350k(although we have no intention of paying anywhere near that)

In 2004-2008, they were selling these houses new between 275-400k. Obviously they can't sell them at these prices any longer. So I was wondering how much prices have to jump before it becomes profitable to build once again. It sucks I missed the best opportunity to buy but if I can get a payment for less than what it is for rent I'd still like to buy. So what it is it going to take to get more inventory in the market and how long do you expect that to happen? From what I understand all these investors who snatched up houses cheap, don't plan on selling their houses as long as rent remains near current levels.