A decrease in vacant housing inventory and an uptick in sales have home builders ramping up construction for the first time in months, Time reports. Currently, the number of new homes on the market would take an estimated 8.8 months to sell—a far cry from the standard of 4 to 6 months, but a vast improvement over January, when the benchmark stood at 12.4 months.
The building boom is all well and good if demand continues its upward trajectory, but could spell disaster otherwise. An unusually large number of buyers—one third—are in the market for the first time, in part due to federal incentives due to expire at the end of the year. Another collapse of the market is entirely possible, and it could cripple builders taking advantage of the current rosy climate.