We are already faced with a shortage in the inventory of single-family homes. Looks like it will get a lot worse since there were so few New Single-Family building permits issued in 2009.
Low permit activity seems to be correlated with (ie. precede) higher home prices. The converse also seems true. Higher permit activity is correlated with a downward trending residential real estate market.
For 2010, even as interest rates climb, the shortage of homes is expected to keep home prices high.
We are seeing more activity at the Dept of Planning & Permitting though.
