Here’s on the ground local home builder commentary from across the country per our April survey. A lot of builders are pressing the pause button &/or slowing things down until construction costs moderate & they can catch up with sales. Worries about buyer price ceilings too...
#Chicago home builder commentary: “We sold all of the homes we had in early 2021 & haven’t started anything new, & may not due to the cost of construction. Can’t hold pricing for clients longer than 45 days with rising material pricing.”
#Nashville home builder commentary: “Pray for lower lumber prices.”
#Austin home builder commentary: “What we are seeing now is unsustainable. The hidden investors will eventually run out of money.”
#Tulsa home builder commentary: “We stopped sales at the moment to allow ourselves to catch up with our backlog.”
#OklahomaCity home builder commentary: “We stopped selling custom homes. Only sell homes past roof and sheetrock.”
#WashingtonDC home builder commentary: “We could sell a lot more but don’t want to burn through our lot inventory.”
#Orlando home builder commentary: “Accomplishing the sales number is easy. We’re restricting sales & coming in higher than projected. Getting the starts in the ground & houses built is the very difficult part of the equation.”
#Tampa home builder commentary: “Construction times are longer due to material delays & government delays. Build times are elongating.”
#Melbourne home builder commentary: “Home sales & material prices are out of control. We’re limiting sales to 6-8 per month. Other builders are also limiting sales & some builders are pausing sales indefinitely until they can get a handle on this crazy market.”
#Cleveland home builder commentary: “Demand is strong, but we see sales dipping as sticker shock has started to set in, combined with limited lot supply.”
#Sacramento home builder commentary: “Expecting market will begin to level out as buyers reach their price ceiling.”
#OrangeCounty home builder commentary: “Prices simply do not go up forever. Understand too that only a small portion of this is going to margin, since costs are just plain brutal.” END OF🧵

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More from @RickPalaciosJr

21 Apr
Some interesting housing color from mid-April around the country home builder channel check. Bunch of market commentary to follow...will try to hit most top markets.
#SaltLakeCity home builder mid-April color: “Still have 10x buyers to available homes to buy. Went to 'highest/ best' offer system March 1st & offers over asking price are shocking. Most offers are 10+% over ask, that's after raised base prices $10K to $20K+ with each release.”
#Austin home builder mid-April color: “Super high demand. Volume controlled with release process, otherwise would be unbearable. Some price increases are $100K between releases.”
Read 28 tweets
5 Feb
Just published January @JBREC home builder survey. Market's still strong. Some builder color to paint the picture:

Boise builder: "Only reason sales aren't higher is because we're listing spec homes later in process and limiting starts to avoid gapping on lots.”
Bend, OR builder: "Getting calls daily from brokers asking when we'll be listing homes they see under construction. Cannot build fast enough!"
Atlanta builder: "Pricing is off the charts. We're well over 20% YOY when you look at base pricing, lot premiums, and no incentives.”
Read 8 tweets

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