US homebuilders say they’re on the edge of a steeper downturn as buyers pull back

By Diana Olick
October 31, 2022
Category: Finance & Economics
Region: United States

Homebuilders say 2023 is going to bring an even sharper downturn in the market, as high interest rates scare away buyers. Housing starts for single-family homes dropped nearly 19% year over year in September, according to the U.S. Census. Building permits, which are an indicator of future construction, fell 17%. “It is definitely a hard landing for housing,” said one homebuilder in the Denver area. …Sheryl Palmer, CEO of Arizona-based homebuilder Taylor Morrison, which just reported strong earnings for its third quarter, said entry-level buyers are clearly struggling. But she also admitted that higher-end buyers are not flooding in the door either anymore.

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