The shortage of inventory is becoming a major pain point for housing in this spring home-buying season. And it's not just existing homes. I did a quick survey today of builders in Pueblo, Colorado, to find out what they're seeing right now.
Why Pueblo? That city is seeing spillover demand from those who are being priced out of nearby Colorado Springs, which itself used to be a sanctuary for those priced out of metro Denver...
Here's what they had to report:
Pioneer West Homes, a custom green builder, is getting "a lot more calls" than usual and the demand has pushed breaking ground on a new home out to a year from now. That's about 6 months longer than usual.
Eagle Ridge Homes, a smaller builder on the north side of Pueblo, said they haven't had a spec home in a couple of years due to demand — they get bought as soon as they are built. They noted construction costs continue to rise: "lumber is crazy and appliance availability is challenging."
Domega Homes, a builder in a large master-planned community, said they are seeing increased demand from retirees coming in from different states. They noted the challenges of the rising price of lumber and the difficulty of getting electrical materials. They have had to replace their usual Whirlpool appliances with other comparable brands.
Premier Homes, which has locations from south of Pueblo to north of Colorado Springs, said they are running two to three months behind their normal timeline. They noted "higher than usual" lot prices are pushing some buyers out of the market. They are seeing a lot of buyers who "can't get what they want in Colorado Springs — they are getting beat out."
Lumber prices continue to be a headwind for builders. Check out our article on the cascade effect of higher lumber prices on other building materials here, and the latest on builder confidence (and why it's decreasing) here.
Today's HousingWire Daily episode, features an interview with Odeta Kushi, deputy chief economist for First American. In this episode, Kushi discusses her recent article which digs into whether or not the pandemic will affect homeownership demand among single women in America.
Servicers can make a difference to homeowners impacted by COVID-19. Fannie Mae's one-stop toolkit has all the information you need to answer homeowners' questions about forbearance and post-forbearance options. Visit the Toolkit.
We're a year into the pandemic, and while smart policy has delayed a default wave, the threat still looms large. Servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors, and stewards of consumer protection to regulators. Presented by Sagent Lending Technologies
HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480
.png?width=1116&upscale=true&name=Short%20Sale-MVP%20970x250%20V2%20(2).png)
EmoticonEmoticon