This article from The World Property Journal discusses market trends as it relates to housing inventory and newly built homes. Consumer confidence is on the rise as the markets continue to be impacted by interest rates and building material issues. Enjoy the article and let me know if you have any questions.
Tim Houterloot - Broker/Realtor
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Source: The world Property Journal | Repost Houterloot 4/27/2023 -
Builders remained cautiously optimistic in April as limited resale inventory helped to increase demand in the new home market even as the industry continues to grapple with building material issues.
According to the latest National Association of Home Builders/Wells Fargo Housing Market Index, U.S. builder confidence in the market for newly-built single-family homes in April 2023 rose one point to 45.
"For the fourth straight month, builder confidence has increased due to a lack of resale inventory despite elevated interest rates," said NAHB Chairman Alicia Huey. "Builders note that additional declines in mortgage rates, to below 6%, will price-in further demand for housing. Nonetheless, the industry continues to be plagued by building material issues, including lack of access to electrical transformer equipment."
"Currently, one-third of housing inventory is new construction, compared to historical norms of a little more than 10%," said NAHB Chief Economist Robert Dietz. "More buyers looking at new homes, along with the use of sales incentives, have supported new home sales since the start of 2023. And while AD&C loan conditions are tight, there is not significant evidence thus far that pressure on the regional bank system has made this lending environment for builders and land developers worse."
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