Lot availability continues to impact builders
A growing trend translates into higher home prices.
A recent survey by the National Association of Home Builders (NAHB) found that 65% of builders reported the supply of developed lots in their areas was low to very low.
Although the latest survey results are up just 1% from June 2017, the overall figure is up 42% from September 2012, the NAHB reported.
According to the NAHB, the 65% mark is the highest low-supply percentage recorded in the NAHB/Wells Fargo Housing Market Index (HMI) since 1997. The latest figure also includes 43% of respondents who characterized the supply of lots simply as low and 22% who said the supply of lots was very low.
The continued low supply of developed lots is a hindrance to housing recovery, and a catalyst for recent week new home sales, the NAHB said.
Additionally, a shortage of buildable lots, especially in the most desirable locations, translates into higher prices.
About 82% of home builders in September 2018 said the price of developed “A” lots – or prime lots – was somewhat to substantially higher than a year ago while 77% and 70% of builders reporting said the price of “B” lots and “C” lots was somewhat to substantially than a year ago
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