All prior answers are correct , builders are not wanting carry inventory based on families not able to qualify with FHA loan 3.5% down payment. OR not able sale their homes purchase another home.

If you are searching for a new home some areas have had foreclosures.

About a 50pct drop compared to first quater 2008....but then house starts were down then too.
Lots of builders out of business, and seems like many less spec homes being built.
Builders also seem much more conservative on buyer situations as well...such as taking contingencies to sell a home.

Check out:
http://www.fwbusinesspress.com/display.php?id=9925
I also like
http://www.residentialstrategies.com/RSInews.shtml
They are a provider of information to new home builders...and I think they have pretty good info.

Hoovert,
Great question! The last figures I saw were that new home starts were down approximately 30% from a year ago based on August 08 to August 09 figures. However when I started tracking the change in late 2008 home starts dropped approximately 50% or more within a very short amount of time. As I have been driving around some of the areas in Plano, Allen, McKinney, Frisco, I have been seeing quite a few new homes going up but I don't think they are spec homes.

My son is a custom home builder and I know he quit building higher priced spec homes, he continues building some spec homes in Princeton but in the 130 to 180K range. If you have an area that you would like me to check for you, please call or email me at your leisure. I will be more than happy to give you any information that is available. Thank you for allowing the realtor community to assist you.

Roxanne

As a general rule new construction is down. If you let me know what areas you are interested in I would be happy to send you exact numbers.

Thanks
RJ
rj.avery@att.net