Early restarters, good or bad

One of the larger builders around here has started building houses in one of their neighborhoods of fully developed empty lots. The problem is that inventory of unsold houses is still increasing, still driving home values downward. Now, I understand that they have a huge investment in developing the land that can only get a return by building. But I can't help but looking at them as being a little on the greedy side for adding to the glut. Should builders wait for the market before ramping up?>>>

These new houses are in the affordable catagory. There have been a couple of small developments (about 20 houses) go in during the last two years, both are about half sold. That's why I was surprised when the new development (150 houses) start up. But it's the Mcmansion neighborhoods that are really hurting, and because of class envy, there's very little sumpathy for them. We recently did a mailing to an upscale neighborhood of $600k to $2m houses. Out of 176 sent out, 23 came back as vacant houses. We've never had that rate of return before.>>>

If these are affordable homes in a good area they would sell. I don't feel sorry for all of the people who sunk their money into these huge McMansions expecting to cash in with the rising home prices and are now stuck with an over-priced, over valued home. I hope this recession changes things. It's been a never ending spiral to build bigger and bigger homes on bigger and bigger lots and nothing being built for average income families. jmo>>>

Just today a banner went up saying the neighborhood was now being built by another large builder. So I wonder how well he was doing. Houses suddenly got a lot harder to sell when they required proof of income to get you in. I question adding more housing stock while home values are declining.>>>