Builder Confidence & Housing Supply

Builder Confidence & Housing Supply: According to the National Association of Home Builders, builder confidence dropped this month, which is the first decline since November of 2023, and that is really due to expanding regulatory burdens but also the fact that mortgage rates have been averaging above 7% for the past several weeks now. If there is one thing we need right now to help with inflated home prices, its supply. An increase in supply is the best way to get home prices more affordable across our country and so we want to see builder confidence go up not down. We want to see increases in supply.

To put this in perspective in April this year there were 674,000 single family homes under construction which was the highest count since November 2023 so that is a good trend and Mortgage rates have seen a decrease for the second consecutive week so we will need to continue to watch these factors as we go through the summer. Its great to have mortgage rates decrease to increase confidence in the market but only if the supply is there. If the supply stays low, lower interest rates will only continue to cause prices to go up and supply to go down.

That’s this weeks update, will see you all next week!

About Bryan:

Bryan Selser, the Marketing Director at Coldwell Banker Advantage in Raleigh, NC, brings extensive real estate experience.

Topics:

Builder Confidence & Housing Supply, Real Estate Market Update, Real Estate, Housing Data, Market Report