Homebuilders are optimistic in spite of supply chain issues
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Homebuilders deal every day with the messed up supply chains we’ve been talking so much about — delays and price hikes and unavailable items. Nonetheless, they’re feeling pretty optimistic these days. The National Association of Home Builders and Wells Fargo reported this week that their sentiment has improved notably. New housing starts and permits have been running strong.
Homebuilders bummed out briefly when the pandemic hit last year.
But after it became apparent the industry could keep building, and buyers would keep buying, builder sentiment soared. It hit an all-time high last November, said economist Robert Dietz at the National Association of Home Builders.
“Since then, we’ve gone from a market that was unsustainably hot, to a market that is simply hot,” he said.
Lots of buyers are chasing not enough existing homes for sale, said Ken Leon at CFRA Research. And borrowing costs remain low.
“Mortgage rates, relative to the last 30, 40 years, still a great market in terms of affordability,” he said.
Snarled supply chains are a problem, said the Home Builders Association’s Robert Dietz — pushing delivery times out and prices up.
“Builders report shortages of windows and doors and flooring and appliances, and I’ve even heard stories of garage doors that are not going to arrive for months,” he said.
Hard to sell a new house without one of those.
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