Home builders

Homebuilders struggle to meet new challenges

MONTGOMERY, Ala. (WSFA) – The housing market continues to be a national hot topic with rising mortgage rates and ongoing supply chain issues. If you’re buying or selling a home right now, chances are it’s nothing new to you.

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

Rutland says things are tough right now when it comes to building a new home, adding that the biggest impact of supply chain issues is when new construction is complete.

“So it’s every day there’s something new that’s hard to get. It’s just that it doesn’t seem cohesive. It’s just that all the products and components in the house are hard to get. said Rutland.

He notes that the recent rise in interest rates 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 is still a shortage of housing, we are certainly going through tough times.”

Sales of existing homes are also affected. Pending home sales, a measure of signed contracts for existing homes, fell nearly 4% in April from the previous month, and just over 9% from last month, according to the National Association of Realtors. the previous year.

The typical mortgage payment in March was $1,700. That’s nearly $400 more than a year ago.

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