Builder speculation in unsold homes is at a 13-year high. Is that a problem?

Homes by Stage of Construction

Homebuilders have 358,000 homes or lots on speculation that they would like to sell. 

• 358,000 total
• 214,000 homes are under construction
• 110,000 lots unstarted 
• 34,000 finished homes for sale 

New Home Sales 

In June, builders sold 60,000 homes. They have 358,000 for sale of which 248,000 are in progress or completed. 

Builders have a record 110,000 lots for homes they have not yet started construction. 

New Home Sales and Homes for Sale

Supply in Months

Whether or not current speculation matters depends on the direction of sales.

Some builders held off sales because of soaring material costs (especially lumber). The supply of labor was also tight.

Regardless, prices have risen fast.

One has to wonder when affordability and willingness of buyers to stretch their budgets to buy homes hits a brick wall.