Following four consecutive months of improvement, builder confidence in the market for newly built, single-family homes held unchanged in September with a reading of 58 on the Housing Market Index.
A shortage of buildable lots, especially in the most desirable locations, has emerged as one of the key factors holding back a more robust housing recovery, according to a recent survey by the National Association of Home Builders.
Sales of newly built, single-family homes declined 13.4 percent to a seasonally adjusted annual rate of 394,000 units in July as higher mortgage rates prompted a temporary pause in buying activity.
Double-digit revenue growth for these home builders during the recovery started with pre-planning, re-examination, and retrenching during the recession.
The unemployment rate in the construction sector in May was the lowest it has been in five years, which could signal a coming worker shortage, according to the Associated General Contractors of America.
Sales of newly built, single-family homes rose for a third consecutive month in May, posting a 2.1 percent gain to a seasonally adjusted annual rate of 476,000 units.
As more homes begin to sell, all of the players involved in sales eventually will get some benefit from the momentum alone. But good markets cover up and forgive a lot of bad processes and business errors
This recovery is one in which builders would do well to recognize the trend lines and take a steady course of action rather than stutter steps, which can harm your business.
