Because of many years of underbuilding and homeowners with low mortgage rates deciding not to sell, not enough properties are available for sale to meet demand from buyers. Single-family home builders looking to fill the need are optimistic for 2024 — thanks to lower mortgage interest rates, which are “a promising sign” for new home sales in 2024 because they help buyers afford homes, said Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis at the National Association of Home Builders. Peter Rotelle, owner of the Chester County-based Rotelle Development Company, also expects big things this year. Last year “was really strong,” he said, “which is kind of a weird dynamic” since mortgage rates last year rose above 7%. With homeowners staying put because they don’t want to give up their lower rates, “new construction is one of the only options out there,” he said. Read more here.
Source: Philadelphia Inquirer; 2/1/2024