The editors of BUILDER, along with our partners Hearthstone, invite you to submit a nominee for a coveted award each year: the 25th Hearthstone BUILDER HUMANITARIAN Award.
The Hearthstone Builder Humanitarian Award is presented annually to a homebuilder who has demonstrated a commitment to public service over some time. Meritage Homes was honored recently, as were Nelson Mitchell of HistoryMaker Homes, Edward Burr of GreenPointe Holdings, Sheryl Palmer from Taylor Morrison, and Michael Nieri from Great Southern Homes.
The nominees must be single-family home builders or developers who are for-profit. Employees or owners may nominate individuals or companies. They can set themselves, or they can be assigned either by another builder, charity, nonprofit organization, government agency, or other builders.
The winning builder will receive a cash award to donate to their nonprofit charity or organization of community service. The winning builder and their charity will be featured in BUILDER, our newsletters, and our website. They will also receive national exposure in BUILDER, as well as on our website and in our newsletters.
Housing Market Report
The housing market continues to be affected by affordability shocks, especially existing home sales. Mortgage rates were near 8% in October, and the monthly payment for many major markets in January 2022 was 60% more than it was in October.
We have seen that this low resell stock has pushed people to the new home market. Wolf explained that the resale stock is not just limited but also aging and costly. “New homes are usually more expensive than existing ones.” The price gap has been narrowing.”
Despite the dynamic supporting the new home market, builders share the impacts of “seasonality plus” in the field. Tim Sullivan, chief advisory officer at Zonda, said that builders surveyed were often referring to “scarce” land, “expensive,” “undersupplied,” a “challenging environment of costs,” being “price-sensitive,” “cautious,” or “slowing and competitive.”
According to Sullivan’s research, builders are still enthusiastic about land purchase, but it is becoming increasingly expensive. Zonda surveyed 43 percent of builders who said they were pursuing land acquisition “at full speed,” while 53 percent are moving cautiously. As land demand increases, so do prices. According to 40% of builders surveyed, land prices have increased.
Sullivan stated that affordability is becoming a greater concern for builders. Consumer confidence, affordability of new homes, and economic uncertainty are all ranked as the top three concerns for home builders. In October, 71% said that they had not raised prices, and an additional 13% had lowered the base price.
He noted that “flex dollars, money for closing costs and mortgage rate buydowns [have been effective incentives].” The builders target the sweet spot for buydowns, which is between mid-5 and mid-6.