The National Association of Home Builders reported that it’s HMI, Home Market Index, fell in November six points to 34. This is the fourth consecutive monthly drop in builder confidence and sentiment, totaling a decline of 22 points since July 2023, which represents their lowest level since December 2022. What is putting the crunch on sentiment are the high interest rates, the high cost of buildable land, and the inability of builders to attract first-time home buyers at the level of construction at which they are working.
The NAHB forecast a 5% increase for the number of single-family housing starts for 2024 as financial conditions appear to be easing, but not to the point where there’s a full-blown surge in construction.
As long as interest rates are tracking above 7%, most builders are now having to reduce the prices for new-construction homes in this particular market. According to the National Association of Home Builders, in November, 36% of builders is reported cutting home prices, which is up from 32% back in September. In addition, 60% of builders provided sales incentives of all forms in November, which is down slightly from 62% in October 2023.
According to the recent survey, the Northeast represented the strongest sentiment, falling only one point to 49. The Midwest dropped precipitously three points to 36, and the South fell seven points to 42, with the West coming in with a six-point decline, falling to 35.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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