Price cuts are likely coming to the housing market: The number of new single-family homes for sale jumped to 511,000 in June, the highest since October 2007. Since the 2020 low, the number of new homes on the market has risen by +230,000, or +82%. Excluding the 2006 housing bubble, which peaked at 572,000, this is the largest supply of new homes in history. Meanwhile, new single-family homes in the South have risen to a record 312,000. This is far above the 291,000 seen in 2006, just a year before the housing market crash began. With supply near record highs, price cuts seem unavoidable.(The Kobeissi Letter)