The last point seems to indicate he thinks less new home sales volume leads to lower prices on houses in general.
This makes no sense to me. I see that as a good thing for home prices. If less new homes are sold then more existing homes will sell which means more demand and rising home prices.
The fact that there is less new home sales is just a result of home builders starting fewer communities out of realization that there is too much inventory already.
Yea, I think you are right that that is his thinking, but I still think the logic is flawed.
Sales of homes by homebuilders are under a much different dynamic than existing homes sold by homeowners. Homebuilders can and will reduce supply while they wait for the prospect of better profit margins even while existing home sales are showing increased demand.
This makes no sense to me. I see that as a good thing for home prices. If less new homes are sold then more existing homes will sell which means more demand and rising home prices.
The fact that there is less new home sales is just a result of home builders starting fewer communities out of realization that there is too much inventory already.