Homebuilders say they’re on the edge of a steeper downturn as buyers pull back
By Diana Olick
October 31, 2022
The once-hot housing market is cooling off at an alarming rate, and some homebuilders say it will only get worse come the new year as new orders dry up.
Fast-rising mortgage rates have caused once-frenzied homebuyers to turn on their heels and become worried about their potential investment and the health of the overall economy.
“There’s this cliff that’s happening in January,” said Gene Myers, Chairman of Thrive Home Builders in the Denver area, which was one of the hottest markets in the years leading up to and through the coronavirus pandemic.
U.S. homebuilders were a major beneficiary of the Covid economy. Record low interest rates, combined with surging demand from consumers looking for more living space, caused a run on housing unlike most had ever seen before. Home prices surged over 40% in just two years, and homebuilders couldn’t meet the orders fast enough. They even slowed sales just to keep pace. All of that is over. See More
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