I came across this article in Realtor Mag’s Daily News section today. Citing
an article from the Phoenix Business Journal, it states that, “New-home
builders don’t appear too anxious to help meet the demand.”
To be fair, they do mention the lack of qualified tradesmen and the fear of
another housing bubble that is keeping builders cautious. It also
suggests that perhaps this is being done to keep prices higher in view of short
inventory.
Personally, I can’t speak to the desert Southwest’s conditions, but in this
area (West Oakland and Livingston), it appears that builders are pretty active
- and they seem to be ramping up. But that takes time. I have heard that
there is difficulty finding qualified tradesmen, and that they are shopping
work for the best rates – but who wouldn’t do that?
And in SE Michigan there are still not a lot of lenders doing construction
loans. That means if you’re not a pretty good sized builder with a lot of
office staff you’re taking time to try to find finance solutions for your
potential clients instead of working on new homes.
I don't
buy the premise that new builds are low just to keep prices up, and I'd have
preferred a less dramatic title. Something like, “Why Are So Few New Homes
Being Built,” or something less paranoid. What do you think?
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