November 28, 2022

Portalcot

Interior spice

Home builders struggle as new challenges arise

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MONTGOMERY, Ala. (WSFA) – The housing market continues to be a hot topic nationwide with mortgage rates on the rise and ongoing supply chain issues. If you’re buying or selling a home right now, chances are that’s not news to you.

“Our housing industry continues to be a struggle,” said Jimmy Rutland, President of Lowder New Homes in Montgomery.

Rutland says it’s a tough situation right now when it comes to building a new home, adding that the biggest impact from the supply chain issues is the timing of when a new construction is finished.

“So, it’s every day, there’s something new that’s hard to get. It’s it doesn’t seem to be consistent. It’s just all the products and component parts of the house are tough to get,” said Rutland.

He notes the recent interest rate hike has also affected the housing market, making it less affordable to buy new construction.

“It’s pushing more and more buyers out of the market,” Rutland explained. “So while the demand is still there, and there’s still a shortage of housing, we are experiencing some challenging times, for sure.”

Existing home sales are also being affected. According to the National Association of Realtors, pending home sales, a measure of signed contracts of existing homes, dropped nearly 4% in April from the month before, and just over 9% from a year earlier.

The typically mortgage payment in March was $1,700. That’s up nearly $400 from a year ago.

Copyright 2022 WSFA 12 News. All rights reserved.

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