BiggerPockets Daily Homebuilders Sit On Most Inventory Since 2009
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May 13, 2025 Spring 2025 sees homebuilders facing an inventory surge, the highest since 2009. Buyers now wield more power as unsold homes stack up, particularly in Florida and Texas. We'll dive into how this shift is changing market dynamics and what it means for investors. Additionally, there are interesting insights on negotiating better deals and the unique landscape for new builds in the Sunbelt, along with indicators suggesting a bright future for the multifamily sector.
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Home Builders Face Slowing Market
- Builders face a slower 2025 spring selling season with rising unsold inventory indicating higher buyer leverage.
- Incentives like mortgage rate buy-downs and price cuts are notably increasing, signaling softness especially in the Sunbelt markets.
Inventory Highest Since 2009
- Completed but unsold single-family homes hit 119,000 in March 2025, the highest since 2009.
- Sunbelt markets like Florida and Texas face oversupply and pricing pressure, while Midwest and Northeast remain tighter.
Price Growth Decelerates Sharply
- Price growth in major metros sharply decelerated from 47 rising metros in 2024 to 34 in 2025.
- Florida and Texas markets show notable price declines and soft demand, while some Northeastern cities see gains.