24 Mar New-Home Slowdown Isn’t Buyers, It’s Builders
New-home market problems aren’t new – rising prices for supplies and a tight workforce. But pending sales continue to be high, and many builders are pausing to complete a backlog of projects. In top-listed Jacksonville, pending new-home sales are up 80.5% year-to-year.
NEW YORK – Builders are slowing down production to catch up with a backlog of projects while trying to keep construction prices in check. In some cases, they may be turning down willing, qualified buyers because they already have too many homes in production.
According to real estate analytics firm Zonda’s latest New-Home Pending Sales Index, which reflects February housing data, pending new-home sales fell month-over-month, but they’re still up 35% annually across the country.
Government data also showed a 10.3% decrease in February new-home construction. Builders are reporting that increases in material costs – notably on lumber – are continuing to challenge growth in new-home construction.