There is still strength in the economy, but the supply situation has changed quite a bit in the past year. Builders now have excess capacity and most are sitting on large inventories of spec homes and buildable lots. At the same time, the City is being pressured to rubber stamp development proposals and vast tracts of newly serviced land could be added to the city's inventory in the next few years. I think this supply pressure will, at the very least, keep prices in check.
|