Quote:
Originally Posted by Randall55
If you already have a home, I agree. If you have not retired and are still looking, it is a different story. The developer cannot keep building if his inventory is not moving. Does this mean he will sell some of his land to other builders? If so, what will be built? Or, will he just slow the pace? If he chooses this route, commercial will suffer. You can't open a store, restaurant, or medical facility if there are not enough customers. Will construction workers be forced to leave the area? This will harm the community, as well.
|
Another post that the Developer is not going to survive.
First, the developer bought most of the land when rates were at 2 or 3%.
Second, construction efficiently have led to lower construction costs (i.e. the pre fab concrete walls).
Third, if the developer didn’t model a threshold for an increase in interest rates, I would be shocked.
The developer controls the inventory of new homes, if they want more inventory, they put more on market.
Much of the pre owned inventory are flippers, who are out of the 1 year window, and waited til interest rates dropped a bit.