"Buyers are hesitant, traffic is thin, and the long-awaited lift from lower mortgage rates hasn't materializednot yet. With household budgets squeezed from all sidesrate buydowns, rising taxes, climbing home insurance premiums, expiring ACA subsidiesdemand for new homes, while structurally supported, is wobbling in the near term. In a flat or falling pricing environment, you don't get many do-overs, says Carter Malloy, founder and CEO of Acres."
"Put simply, it's not just about buying betterit's also about avoiding the 10% to 20% of land deals that become problems. In a jittery market, preventing the unforced error can be as valuable as chasing marginal gains. This limbo puts intense pressure on land teams. Do they buy now, or hold? Sell off entitled parcels or double down on forward positioning? Is now a moment for defense, or one for a bold land bet that will pay off when demand returns?"
New-home selling has slowed into a holding pattern after a chaotic four-year stretch of feast, famine, and fiscal policy shockwaves. Buyers are hesitant, traffic is thin, and the long-awaited lift from lower mortgage rates has not yet arrived. Household budgets face rate buydowns, rising taxes, higher home insurance premiums, and expiring ACA subsidies, which weaken near-term demand despite structural support. Flat or falling prices and mounting carrying costs force intense scrutiny of every lot under contract. Builders are delaying land acquisitions, second-guessing lot releases, and running uneconomic specs. Some deals are structured to cut losses or breakeven, elevating the value of downside protection.
Read at www.housingwire.com
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