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In an Effort to Boost Inventory, Builders Are Stalled by Rising Construction Costs

Pro Builder

In an Effort to Boost Inventory, Builders Are Stalled by Rising Construction Costs. Throughout the pandemic, the cost of building a new home surged thanks to record high materials prices and supply chain disruptions. Mon, 08/15/2022 - 10:43.

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Building Material Costs are Top Concern Despite Builder Confidence

Pro Builder

Building Material Costs are Top Concern Despite Builder Confidence. While low existing home inventory, mortgage rates, and a growing number of prospective buyers keep builder confidence up, building material costs threaten affordability and availability. NAHB says home prices will continue to rise through 2021.

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Fewer Home Builders Are Offering Discounts as Buyer Demand Rebounds

Pro Builder

A lack of existing inventory is forcing prospective buyers into the new-home market and boosting home builder optimism for future projects. Although builders are still contending with shortages in material supply, the NAHB's overall homebuilder confidence reading rose to 45, as mortgage rates continue to slide down and boost demand.

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Fewer Home Builders Are Offering Discounts as Buyer Demand Rebounds

Pro Builder

A lack of existing inventory is forcing prospective buyers into the new-home market and boosting home builder optimism for future projects. Although builders are still contending with shortages in material supply, the NAHB's overall homebuilder confidence reading rose to 45, as mortgage rates continue to slide down and boost demand.

NAHB 94
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Single-Family Builders Report Material Costs Are Up 26% on Average

Pro Builder

Single-Family Builders Report Material Costs Are Up 26% on Average. A recent survey of home builders found that on average, building material costs have increased 26.1% NAHB’s Housing Market Index also found the highest share of builders are reporting severe material shortages, such as appliances, framing lumber, windows, and doors.

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Builder Confidence Begins to Weaken as Material and Land Prices Increase

Pro Builder

Builder Confidence Begins to Weaken as Material and Land Prices Increase. NAHB Chairman Chuck Fowke told CNBC that builders are becoming unhappy with the lack of affordable lots, delayed delivery times, and supply constraints. cbroderick. Thu, 01/21/2021 - 09:51. In November, that number reached a record high of 90.

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Home Builders Remain Optimistic Despite Market Headwinds

Pro Builder

A lack of existing inventory is shifting buyer demand toward the new-home market, and that trend could pick up steam if interest rates stabilize in the months ahead. “A A significant amount of housing demand exists on the sidelines,” says NAHB Chairperson Alicia Huey. Read more Builders New-Home Sales Economics Builders