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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

With continued supply chain disruption, cost increases and fear of inflation , the market has felt tenuous at best. Our upcoming State of the Residential Construction Industry (SORCI) Report will reflect how builders have braced for impact: Despite the rate of new contracts slowing, margins didn’t decrease.

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Despite lack of supply, existing home sales rise 6.7%

Housing Wire

Homes went under contract in just 19 days on average, down from 21 a year ago. ” While homebuilders are getting closer to delivering new homes , they remain stymied by ongoing global supply chain issues. Sales of homes priced above $1 million were up 39%. “While the 6.7

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Pending home sales reach highest May mark in 16 years

Housing Wire

Contract signings on new homes increased 13.1% ” Ruben Gonzalez, Keller Williams chief economist, added that he is “optimistic” new home construction will pick up. “We will continue to gain momentum through the rest of the year if we can avoid further supply chain disruptions ,” Gonzalez said.

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The Lasting Impact of COVID-19 on the Homebuilding Industry

Eppraisal

With lockdowns, supply chain disruptions, and changing consumer preferences, the industry experienced significant shifts that have had a long-term impact on its future. Some builders have turned to alternative materials, such as recycled or locally sourced products, to mitigate supply chain vulnerabilities.

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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. What are you expecting to see next year in terms of supply chain issues?