Single-Family Homes Do The Macarena and Take a 12.2% Dip
- Rumblings about an unexpected decrease in new single-family homes; they seem to be practicing the Macarena, taking a 12.2% step back between October and November. The annual sales rate sashays around 590,000 and it’s not even out of breath.
- Apparently, home builders have taken on the role of Batman, fighting off a storm of supply chain woes, unexpected construction delays, labor shortages, and material price increases.
- But do not fear! Unlike in a thriller where the suspense is drawn out and ends with a cliffhanger, we’ve got interest rates donning a superhero cape preparing to save the day. Lower interests could pump up consumer enthusiasm and make them do cartwheels right into getting a mortgage. Tesla might not be the only one landing on the moon.
- However, decreasing interest rates alone might not be enough to completely clear the clouds. Inflation’s big, bad wolf huff and puff seems to blow away any hard-won victories from lower interest rates. So, the real question is, will the pigs’ loan house stand against the big bad wolf or the straw houses of previous years?
- Builders are reportedly trying to project confidence by breaking out their crystal balls, predicting the future of housing demand to stay strong. But remember, those affected by the Great Toilet Paper Crisis of 2020 know there’s nothing predictable in a pandemic.
House Party Turns Revenue Downer, but Interest Rates May Lure Partygoers Back
- Rumblings about an unexpected decrease in new single-family homes; they seem to be practicing the Macarena, taking a 12.2% step back between October and November. The annual sales rate sashays around 590,000 and it’s not even out of breath.
- Apparently, home builders have taken on the role of Batman, fighting off a storm of supply chain woes, unexpected construction delays, labor shortages, and material price increases.
- But do not fear! Unlike in a thriller where the suspense is drawn out and ends with a cliffhanger, we’ve got interest rates donning a superhero cape preparing to save the day. Lower interests could pump up consumer enthusiasm and make them do cartwheels right into getting a mortgage. Tesla might not be the only one landing on the moon.
- However, decreasing interest rates alone might not be enough to completely clear the clouds. Inflation’s big, bad wolf huff and puff seems to blow away any hard-won victories from lower interest rates. So, the real question is, will the pigs’ loan house stand against the big bad wolf or the straw houses of previous years?
- Builders are reportedly trying to project confidence by breaking out their crystal balls, predicting the future of housing demand to stay strong. But remember, those affected by the Great Toilet Paper Crisis of 2020 know there’s nothing predictable in a pandemic.
House Party Turns Revenue Downer, but Interest Rates May Lure Partygoers Back
I’ve seen my fair share of business news, but this real estate saga takes the cake, the icing, and the cherry on top. I mean, marketing a home these days seems more dramatic than a reality TV show! With all the scenic plot twists, we’ve had a rollercoaster ride worth a bag of popcorn.
Make no mistake. These are wintry headwinds for our real estate industry. But don’t hand over the tissue box just yet. In a world where online sales and discounts are as exciting as a GOT episode, lower interest rates might just be the “Game of Thrones” twist in our real estate storyline. Yet, even if interest rates swoop in like a knight in shining armor, the dragon named inflation and the White Walkers of supply chain issues could singe its armor.
Despite these icy challenges, our very own real estate protagonists – the brave builders – are predicting a hot future for housing demand. That sounds like optimism, or maybe they just binge-watched “The Secret” on Netflix. Either way, we’re in for an unpredictable next season in the real estate industry. Remember to keep your popcorn close as the drama unfolds. Disruptions may come and go, but one thing’s for sure – it won’t be boring. Stay tuned, folks!
Original article: https://www.inman.com/2023/12/22/new-home-sales-fell-in-november-but-brighter-days-may-lie-ahead/
