While it may be possible to see how large builders with their lending units could continue to over-build despite the warning signs, why did smaller builders keep going? Sometimes housing market predictions tell the story. The reasons are varied, but in the end, it really doesn’t matter.
Housing Market Predictions and builders
What does matter is identifying the best markets to target in the downturn, and finding a way to minimize risk and accurately read the market today and in the future. All businesses, including builders, need to be able to project, with accuracy, how the forces of supply and demand will affect their company. Anyone can build a home during a boom and make a profit, but what about housing market predictions?
But only those companies that can continue building homes during both boom and bust will stay in business. With the right information, a builder can not only survive, but thrive, even when the overall market has a glut of inventory. What matters is Local Market forecasts, not Phoenix Housing Market Predictions or Florida Housing Market Predictions 2013 or even Housing Forecast by State, it is LOCAL. Knowing present value, or what a house is worth helps some, but having a clue into the future is what separates a speculator from the investment in real estate.
Surviving or Thriving with Housing Market Predictions
Those who are to survive during this current correction will need to be smarter, have the best information and only build properties they know are going to sell. To do so, builders will need to find a new way to forecast growth and identify true supply and demand.
Otherwise, they may not survive the next correction.
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