Home builder commentary from our survey this month was about as negative as I've seen to date. Here's some of the market color that jumped out...
— Rick Palacios Jr. (@RickPalaciosJr) November 9, 2022
Home builders are finally seeing a catastrophic tanking in new orders. This is very good news for fighting inflation and ending the fed rate hikes.
(Orders were trending down, but not quite falling off a cliff until now.)
These builders are making massive cuts to production. This will free up labor, making a lot of workers available to ease the chronic shortage in contractors. This will reduce the pressure on construction materials, many of which are in tight supply.
As the builders cut prices to move their growing inventory, that will also put pressure to bring down existing home prices, drive rents and is a big component of inflation.
I've been amazed at how long it's taken to go from rate hikes to 7% mortgages to demand finally collapsing, but it looks like its kicking into high gear now.