The home building industry is cyclical and somewhat predictable. History has proven ups are eventually followed by downs, and downs are eventually followed by ups. The challenge lies in figuring out just when those changes will occur. Right now, the big questions on everyone’s mind, especially builders, include “are we approaching the next down?” and “is now the time to panic?”
In simple terms, the answer is no. There are signs we monitor that suggest the demand frenzy experienced at the onset of the pandemic is settling down to normal, but there is no need to panic at the moment. My advice is to ignore those negative headlines and rely on our housing experts across the U.S. to break down market fundamentals and decipher trends. Here are a few fundamentals and trends I am monitoring in the Midwest along with their breakdown.
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