"Orders jumped sharply month-over-month, well above typical seasonal patterns, suggesting underlying demand is still very much alive, even in the face of higher mortgage rates and geopolitical uncertainty."
"The gain appears to reflect a catch-up from a slower start to the year, incentives have climbed to their highest levels since tracking began, and most builders expect rising rates to pressure sales pace more than margins."
"Builders have faced similar, if not identical, challenges. Even recently, they endured COVID, navigated supply chain disruptions, labor shortages, and inflation shocks."
"The next challenge is different. It's not survival today, this minute, but it is existential ultimately. It's timing. Specifically, it's a structural land disconnect."
The spring housing market is characterized by unpredictability, with some areas thriving while others stagnate or decline. Recent data indicates a sharp increase in orders, reflecting underlying demand despite higher mortgage rates. However, this resilience is tempered by rising incentives and expectations of pressure on sales pace. Builders have faced numerous challenges in recent years, including COVID and supply chain issues, but the current challenge is a structural disconnect in land availability. This situation requires both realism and resolve from homebuilding leaders.
Read at www.housingwire.com
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