Yulia Slavina

Homebuilders see key metrics hit new lows and inventory rise, Rick Palacios Jr. notes

Homebuilders see key metrics hit new lows and inventory rise, Rick Palacios Jr. notes
Homebuilders survey shows lows and more inventory

Homebuilders surveyed recorded new cycle lows across almost all key metrics in October, according to a summary by Rick Palacios Jr. Unsold inventory rose again in the period. Palacios added that while homebuilders received a reprieve following the U.S. midterm elections, the current day’s Consumer Price Index reading and hawkish commentary from the Federal Reserve have negatively affected hope for the housing market in 2027.

Rick Palacios Jr. previously reported that homebuilders have boosted sales since late 2022 by using costly mortgage rate buydowns to qualify buyers. In September, new home sales fell 3.4% year over year, with bulk sales influencing the totals and potentially rising in the near term, according to Palacios data. These developments follow persistent signs of stress in the sector.

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