Home prices are skyrocketing as the pandemic rages on. Why? Well, one trip to a lumberyard may help to answer those questions. The cost of construction is higher than ever. It means that more people are buying pre-existing homes…well, at least those who can afford the inflated prices.
The population in the U.S. is rising – and part of that is thanks to the Democrats letting in countless illegal aliens. We need affordable housing so that everyone has a place to live. Otherwise, we end up with homelessness spilling out into the streets and more people dependent on the government for financial assistance.
Homebuilders are trying to help the situation. In every state, there are home builders creating entire communities so that families have a home to buy.
There’s just one problem – Biden’s inflation is out of control.
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With inflation still on the rise, homebuilder confidence has taken a huge hit.
According to a recent report, U.S. homebuilder confidence is the lowest it has been since July 2020. Economists expected the NAHB/Wells Fargo Housing Market index to remain unchanged. However, it fell to 75 – 5 points lower than it was in July.
A spokesperson for the National Association of Home Builders explained “Higher construction costs and supply shortages along with rising home prices pushed builder confidence to its lowest reading since July 2020.”
Current sales conditions are falling, too. The traffic of prospective buyers is falling.
Higher construction costs are leading to sticker shock on the cost of new homes. Most families don’t have an extra $10,000 (or more) to spend on a new home.
It’s also important to note that there’s a big difference between home value and market value. Most lenders pay attention to home value. It means that borrowers who can’t put 20 percent down are faced with the reality that they can’t get approved for a loan based on the highly inflated housing market.
Democratic policymakers seem blind to this issue. They’re so focused on renters not being able to pay rent that they’re not looking at those who are capable of buying homes but cannot. If they were to open their eyes, however, they’d also have to admit that all of these issues are because of the poor decisions made by Biden.
Biden’s legislative acts and executive orders have singlehandedly created the inflation in the U.S. As many times as he promises that inflation is temporary, the market is showing otherwise. It’s making it hard to believe anything that Biden says.
While it’s easy for the Dems to live in denial, the housing market is in serious trouble.
Many new home sales have been put on hold. The supplies are either too expensive or simply unavailable. While NAHB Chief Economist Robert Dietz believes that the limitations are temporary, production may be on hold for several more months.
This issue is found all throughout the U.S., though builder confidence is the lowest in the south – which is also where there is the most new construction.
Yet, that doesn’t stop the Democrats from opening up the borders and letting even more people in. It’s placing stress on the economy and the housing market. Maybe that’s their plan. If they can break everything enough, it will make it seem like socialism really is the best answer.