Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Housing News

Builder confidence is stagnant, distressed homes remain major competition

Builder confidence is stagnant

The National Association of Home Builders (NAHB) is reporting today that builder confidence in the market for newly built, single-family homes remains unchanged for the month of August and is still at a stagnant, low level compared to previous years.

Why builders are losing contracts

This month, the NAHB poll included a “special questions” section wherein additional questions were asked of builders, one of which was about why they felt they were losing sales contracts, and 41 percent responded that buyers’ inability to sell their current homes was the top reason.

Expectations on future decline

Builder confidence in sales conditions and current buyer traffic ticked up slightly, but after July’s increase in confidence in future sales, builders’ expectations for the next six months has declined.

Distressed homes are major competition

“Builders continue to confront the same major challenges they have seen over the past year, including competition from the large inventory of distressed homes on the market, inaccurate appraisal values, and issues with their buyers not being able to sell an existing home or qualify for favorable mortgage rates because of overly tight underwriting requirements,” said Bob Nielsen, chairman of the NAHB and a home builder from Reno, Nev.

Advertisement. Scroll to continue reading.

Uncertainty in the market and in jobs

“The uncertain economic climate and concerns about job security are discouraging many potential buyers from exploring a home purchase at this time,” said NAHB Chief Economist David Crowe. “While buying conditions are very favorable in terms of prices, interest rates and selection, consumers are worried about what the future will bring, and builders are echoing those sentiments.”

Regional inconsistencies in builder confidence

Regionally, builder confidence was inconsistent with a relative gain in the Northeast, a small gain in the West, no change in the South and a small decline in the Midwest.

Tara Steele is the News Director at The American Genius, covering entrepreneur, real estate, technology news and everything in between. If you'd like to reach Tara with a question, comment, press release or hot news tip, simply click the link below.


Leave a Reply

Your email address will not be published. Required fields are marked *


American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.



Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.

Real Estate Corporate

(REAL ESTATE) Zillow has long been a data powerhouse, but a lawsuit about a $150M listing offers a look into listings claims.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.