The Housing Tango: Builder Confidence Takes a Downturn
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The U.S. Home Building Confidence
has stumbled a bit. The National Association of Home Builders/Wells Fargo builder sentiment index for October fell six points, down to a measure of 34. Looks like builder confidence got skittish and decided to ‘fall’ in line with the leaves this season.
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Regional Drops
played a part in the overall decline too. The West and Northeast saw the sharpest drops, while the Midwest and South saw marginal ones. Even confidence isn’t immune to the chill of autumn, I guess.
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“Poor Sales”
, “supply chain issues” and “increased construction costs” have been touted as the main culprits for this confidence nosedive. The boogeyman trio of the real estate world– fear them!
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The Future Outlook
, however, wasn’t all gloom and doom. Despite October’s confidence devolution, builders are still optimistic about future sales growth. It’s nice to see that these tough builders aren’t letting a few hurdles dampen their spirits. That’s the spirit, folks!
In The Vortex of Real Estate Drama
Construction costs elevating like balloon animals, supply chain playing hard to get and “poor sales” doing a wicked dance– it’s like a full-blown Broadway show out there, folks! However, amidst the clash of dramatic elements, the builders are still singing their optimistic solos, looking forward to future sales growth. You just can’t write off their mettle.
Call it stubborn optimism or the resilience of the field, builders are broken but not out. So, home buyers, keep your popcorn ready and keep an eye on this space. Masks and lockdowns aren’t the only thrillers in town as the agile dance of the real estate market is set to continue, evidently full of sharp turns and unexpected choreography. Now, who said real estate was boring?
Original article: https://www.inman.com/2023/11/16/builder-sentiment-falls-again-but-lower-inflation-a-cause-for-optimism/