Rick Palacios Jr of John Burns Real Estate Consulting has an interesting Twitter thread on his builder survey:
April homebuilder survey results are here. Top themes: 1) Demand is slowing, namely entry-level due to payment shock. 2) Investors are pulling back. 3) Ripple effect of rising rates starting to hit move-up market.
- Houston: “Many first-time buyers simply no longer qualify with the increase in interest rates, as their debt-to-income ratio gets out of whack.”
- Seattle: “To achieve our desired [sales] pace, we had to make price adjustments.”
- Bend: “Our market has slowed and prices are starting to drop.”
- Indianapolis: ““Traffic has significantly declined and people have paused on moving forward with purchases.”
I was talking to a friend today and he said the permit office says new home permits have almost stopped. They are going to build through and see where they are at later.
April Homebuilder Survey
