What Do Dipping Sales Projections For Home Builders & Rising Interest Rates Mean For #DealHunters 🤔📉🏠
Manage episode 323748395 series 2820712
Back like we never left and ready to serve up even more real estate and foreclosure news! Today, we take a look at the opposite end of the homebuying spectrum as it relates to our search for the best deals as we discuss homebuilders and the market for newly-built homes. We have seen home prices steadily rise over the past 3 years and new builds prices have followed suit. However, due to "lumber shortages," COVID-19, and lack of contractor resources, what it costs to build a home has seen a significant jump as well. With homebuyers gradually coming to grips with rampant market appreciation and the prevalence of 2% interest rates, most didn't bat an eye when they noticed the rising costs of homebuilding being tacked onto the sales price of their brand new home. Consumers buying power had been buoyed by low these low-interest rates, and if that allowed them to qualify for a home that would normally be out of their budget, then so be it. However as the Fed forecasts 6 MORE RATE INCREASES over 2022, will homebuyers start to sober up after years of being drunk on unsustainable financial flexibility? Additionally, how will home builders react to consumers' decrease in buying power as they look to continue their development projects? Sounds like an interesting conundrum, but as #DealHunters we know that chaos brings with it opportunities to get stupid rich 🤑 Listen up as Donny and Jonathan break down the implications of rising mortgage rates and waning home builder optimism.
Mentioned in today's episode
Here's a link to the article Donny discussed in today's episode:
Homebuilders' Sales Expectations Drop Dramatically, As Mortgage Rates Soar
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