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Opinion: The “profitless boom” in residential construction

Housing Wire

The residential construction industry is facing a crisis as builders manage the critical shortage of building materials and labor. Explosive supply and labor costs are forcing long delays and leaving builders out of pocket, as the United States’ property fervor drives insatiable demand. . Be cautious when signing fixed-price contracts.

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The state of the homebuilding market

Housing Wire

This article is part of our 2022 – 2023 Housing Market Update series. After the series wraps, join us on February 6 for the HW+ Virtual 2023 Housing Market Update. With continued supply chain disruption, cost increases and fear of inflation , the market has felt tenuous at best. Homebuilding Contract Values.

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Despite lack of supply, existing home sales rise 6.7%

Housing Wire

The supply of homes for sale fell to a record low, down 16.5% months of supply; a healthy market generally has between four and six months of supply. Homes went under contract in just 19 days on average, down from 21 a year ago. from a year ago. That translates to just 1.6 “While the 6.7 “While the 6.7

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Pending home sales reach highest May mark in 16 years

Housing Wire

. “While [the COVID-19 pandemic, low inventory and high prices] have contributed to pricing out would-be buyers, the record-high aggregate wealth in the country from the elevated stock market and rising home prices are evidently providing funds for home purchases.” ” Contract signings on new homes increased 13.1%

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Builders apply the brakes amid canceled contracts

Housing Wire

However, for the first time in recent modern-day history — due to supply chain issues and other factors — housing completion data has lagged behind housing permits and starts. For this reason, the number of housing units “under construction” is the largest ever recorded in history because they were taking so long to finish.

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What to expect from homebuilders in 2023

Housing Wire

After record sales in 2021, demand for new construction waned throughout 2022 as the Federal Reserve raised interest rates cutting into home buyer’s purchase power and making financing new development projects even more costly for builders. As a result, I think it has actually insulated some aspects of the market.

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CONDO NEWS

Will Springer Realtor

Seattle leads the nation in construction cranes. Multi-family construction is still moving forward but most of the residential buildings will become apartments. This may help lower monthly rents but the overall construction industry continues to face challenges. All projects start with financing.