Author Topic: New Home Construction Slowing Down  (Read 934 times)

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Offline USCTrojanCPA

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New Home Construction Slowing Down
« on: May 18, 2021, 08:22:27 PM »
This was a very interesting article from CNBC. 

https://www.cnbc.com/2021/05/18/home-construction-sees-biggest-drop-since-pandemic-hit-heres-why.html

Seems like the significant material input increases are starting to effect builders in a negative way, not to mention the labor shortage of contractors.  If this spreads to Orange County and Irvine, expect to see more upward pressure to home prices as new home buyers get pushed into the resale market.
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Offline lovingit

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Re: New Home Construction Slowing Down
« Reply #1 on: May 18, 2021, 09:27:32 PM »
Homes releases are being delayed and I suspect future phase pricing will increase at higher rate.

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Offline USCTrojanCPA

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Re: New Home Construction Slowing Down
« Reply #2 on: May 18, 2021, 09:30:45 PM »
Homes releases are being delayed and I suspect future phase pricing will increase at higher rate.

Agreed, especially if builder's have no locked in pricing for materials and secured their GC/sub contracts.
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Offline sleepy5136

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Re: New Home Construction Slowing Down
« Reply #3 on: May 31, 2021, 07:16:00 PM »
I’m starting to see home prices plateau and actually see more price drops than price increase emails from Redfin for homes < 1.5m. Maybe its temporary.

Offline USCTrojanCPA

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Re: New Home Construction Slowing Down
« Reply #4 on: May 31, 2021, 08:00:31 PM »
I’m starting to see home prices plateau and actually see more price drops than price increase emails from Redfin for homes < 1.5m. Maybe its temporary.

Sellers are seeing the huge price increases and are beginning to ask higher and higher prices.  This may be the first step in having the market calm down.  What we really need to see is inventory levels to increase to confirm this because right now we have 3 WEEKS (not MONTHS) of inventory in Irvine.
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Offline Innosint

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Re: New Home Construction Slowing Down
« Reply #5 on: June 03, 2021, 07:43:49 AM »
USC, you know who my company's current major client is.

When even they are complaining about supply shortage preventing them from starting project...
not even price, but the sheer supply, then you know we are in interesting times...

Offline USCTrojanCPA

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Re: New Home Construction Slowing Down
« Reply #6 on: June 03, 2021, 08:37:15 AM »
USC, you know who my company's current major client is.

When even they are complaining about supply shortage preventing them from starting project...
not even price, but the sheer supply, then you know we are in interesting times...

Your company's client does not look money as a constraint so you know it's a supply issue.
Martin Mania, CPA
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Offline zubs

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Re: New Home Construction Slowing Down
« Reply #7 on: June 03, 2021, 10:18:33 AM »
When I think about my customers not letting me raise my prices, I think to myself.

Fuck you! Empty shelves motherfucker...

Then I tell them I'm not shipping.

And then my inflated prices are confirmed.

Offline zubs

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Re: New Home Construction Slowing Down
« Reply #8 on: June 03, 2021, 10:36:13 AM »
A guy I know who buys semi-conductors for his factory has to bribe the sellers to get product these days. 
example:
A buyer slips $10,000 to a seller to buy $5,000,000 in chips to make sure those chips go to him and not his competitor.
Buying and selling is quite a dirty business.

It use to be sellers who bribed buyers...how times have changed.

 

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