Homebuilders plan for a slower and pricier year ahead

New home sales are rising, but builders are tapping the brakes as the trade war and broader economic uncertainty grip the industry.

New home sales are rising, but builders are tapping the brakes as the trade war and broader economic uncertainty grip the industry.

Sales of new homes rose 7.4% from February to March, according to federal data released Wednesday, as buyers took advantage of somewhat lower mortgage rates and a wider supply of properties to choose from. But rates have already begun inching back up, and homebuilders are bracing for a slowdown.

Federal figures showed housing starts plunged more than 11% from February to March. Developers’ six-month sales expectations slipped 4 percentage points from March to April, the National Association of Home Builders reported separately last week.

“You’re being very selective of what you’re working on right now with all the uncertainty in the marketplace,” said John Kirk, founder of the Lightpath Company, a multifamily home developer in New Braunfels, Texas.

Waiting and seeing is very bad for construction.

https://www.nbcnews.com/business/real-estate/homebuilders-plan-slower-pricier-year-ahead-rcna202465

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