In another sign of a reversal of fortune for homebuilders, new-home sales in July tumbled to their slowest pace in six years. Just a year ago, homebuilders were overflowing with new contracts and, at times, raffling off their few remaining lots to wait-listed buyers. But since then, buyer traffic has slowed significantly as costs have soared. Rising mortgage rates and high inflation have crashed the homebuilding party.New-home sales in July reach
The rise of 3D-printed houses will change the way we approach real estate and architecture. Here’s what you need to know about 3D-printed houses as the concept hits the mainstream housing market. No longer a far-off or theoretical concept, 3D-printed houses are set to cause a shift in the 21st century real estate market. With several 3D-printed-house manufacturers already operating around the world, these new residential structures wi
Rising costs are dampening buyers’ appetite for new homes, data shows. Builders are growing concerned that demand for new homes is leveling off, and they’re slowing production out of fear that too many buyers have been priced out of the market. Single-family construction in June dropped to its lowest level since April 2020, when the COVID-19 pandemic was just beginning, the Census Bureau reported Tuesday. Further, housing permits—a gauge of
They’ve jumped 42% over the last three years, data shows. What are builders doing to bring some relief to the market? Inflation is pushing up homebuilding costs at an unprecedented rate, according to Bank of America’s Who Builds the House? report. Supply-chain disruptions and labor shortages are adding pressure to rising prices.The average cost for materials to build a single-family home jumped 42% from 2018 to 2021, adding thousands of dolla
Surging mortgage rates have finally cooled off the housing market. The cooldown, though, is coming unevenly, accentuating differences between the existing home market and new construction.The supply of existing homes, while still below normal, is surging as sales decline. Homebuilder stocks have slumped. Investors were braced for the worst when two major homebuilders last week reported quarterly earnings — along with their market outlook.Instea
Rising prices in the new-home market prompted buyers to take a step back in April. The sale of newly built, single-family homes fell 16.6% in April, dropping to their weakest pace in two years, the Department of Housing and Urban Development and the U.S. Census Bureau reported Tuesday. Rising mortgage rates are worsening affordability conditions, builders say.New-home sales are down nearly 27% compared to a year earlier, the report shows.“The v
New-home buyers are facing higher prices, and a big reason is escalating building costs. Building material prices are up 19% over a year ago, according to a report from the Bureau of Labor Statistics. Material costs have jumped by about 36% just since the pandemic began. Many builders are passing on those higher costs to home buyers.The price of a new home continues to climb and reached a median sales price of $436,700 in March. That is up 2
About 14% of new home buyers—or one in seven—forgo a home inspection, a survey finds from Clever Real Estate. Buyers are more likely to hire a home inspector when purchasing an existing home.But new homes can turn up problems too.For those who did do an inspection, 65% said they uncovered issues with their newly constructed home. The majority of those problems were minor and did not delay closing. However, about a quarter—24%—of new
New-home buyers are having a long wait for their homes to be done. Labor shortages and global supply chain bottlenecks are delaying the completion of many new-home construction projects. The number of housing units that were authorized but didn’t start construction yet rose by 47% nationwide from 2019 to 2021, according to a new analysis by LendingTree researchers. The delays were most prominent in the Northeast, where delays more than doubled.
The construction of single-family homes slowed last month as builders complain of numerous headwinds that are limiting their ability to add more inventory. Ongoing supply chain bottlenecks continue to delay construction projects and raise homebuilding costs, builders say.Also, rising mortgage rates—with the 30-year fixed-rate mortgage now averaging over 5%--as well as higher new-home prices are beginning to soften demand.Both single-family hous
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