Welcome to today’s Real Estate news roundup! In the housing market, high mortgage rates are impacting new home construction, exacerbating the ongoing housing crisis in America. Prospective buyers and homeowners are facing reluctance due to elevated mortgage rates and soaring home prices, resulting in a significant shortage of 3 million to 6 million homes. Recent data from the U.S. Census Bureau reveals a slowdown in both single-family and multifamily housing construction, with builders anticipating that mortgage rates will remain high. Factors such as an uncertain job market, rising materials costs, limited land availability, and financing challenges have contributed to the decline in new construction. However, builders are offering incentives and discounts to entice buyers, while alternative housing solutions like shipping container homes are gaining traction. In other news, April is New Homes Month, and the Wisconsin Builders Association (WBA) is sharing valuable tips on how to choose the right home builder and protect your investment. Homeowners are encouraged to ask potential builders about their experience, certifications, past customers, contracts, warranties, and more. Exploring model homes and local Parade of Homes events can also provide insights into a builder’s work. To dive deeper into these stories, click here for the high mortgage rates impact, and visit www.wisbuild.org/empowered-homeowners for the April New Homes Month tips from WBA. Let’s explore the latest updates in the real estate world!
High mortgage rates hit new home construction | Fortune
The housing crisis in America is exacerbated by high mortgage rates and home prices, leading to a reluctance among prospective buyers and current homeowners to enter the market. This has resulted in a massive housing shortage of 3 million to 6 million homes. Recent data from the U.S. Census Bureau reveals a slowdown in both single-family and multifamily housing construction, with builders anticipating that mortgage rates will remain elevated. Factors such as high mortgage rates, an uncertain job market, rising materials costs, limited land availability, and financing challenges have contributed to the decline in new construction. The decrease in construction numbers leads to lower inventory levels, preventing a drop in home prices. However, it also impacts local labor markets as fewer construction projects get started. Builders are offering incentives and discounts to entice buyers, but there may be a long-term shift towards alternative housing solutions such as shipping container homes. To learn more about the impact of high mortgage rates on new home construction, click here.
April is New Homes Month: How to choose the right home builder – Monroe Times
In celebration of New Homes Month, the Wisconsin Builders Association (WBA) provides tips for homeowners on choosing the right home builder and protecting their investment. It is important for homeowners to find a builder whose business approach aligns with their preferences. Homeowners should ask potential builders questions about their professional experience, certifications, past customers, legal history, contracts, warranties, trade association memberships, and communication during the building process. Additionally, it is recommended to visit model homes or local Parade of Homes events to get a better sense of the builder’s work. For more tips and resources, visit www.wisbuild.org/empowered-homeowners.