MarketWatch, January 26, 2022, ‘The new year holds both promise and potential pitfalls for the housing market’: New-home sales surge as supply shrinks
The surge in new-home sales reinforced the report on new-home construction released earlier this month, suggesting that home builders have a captive audience of buyers eager to scoop up their properties. “This growth is notable because November and December are historically slower months for sales due to the holidays, yet performed strongly this year,” said Kelly Mangold, a principal with RCLCO Consulting.
Nevertheless, builders face continued headwinds in the form of volatile material costs and labor shortages, which should drive the price of new homes higher. That will strain affordability for some buyers at a time when mortgage rates are on the up.
