The June 2019 HomeSphere/BTIG Survey shows the highest reported building input cost increases since October 2018, with approximately half of builders saying that the prices of labor (48%), land (50%) and materials (42%) have risen year-over-year.
Out of 112 respondents across a broad spectrum of the housing industry, 40% reported year-over-year increases in sales in June, up from 39% in May, while 16% saw a decrease in YOY sales, down from 24% in May. Thirty-six percent of respondents noted their sales were better than expected, while 25% reported worse-than-expected sales.
The percentage of builders that reported offering entry-level and first-time buyer focused homes has grown to its highest level in the history of the survey, at approximately 55%. Twenty-four percent of respondents had raised most or all of their base prices YOY, while 12% had cut some, most or all base prices. Both percentages are the highest so far this year.
As of the latest survey, approximately 70% of the survey’s builder respondents have a presence in the move-up or luxury market. According to BTIG, these results underscore increases in price dispersion, as well as the dichotomy of relative demand and pricing power for low- and high-cost homes.
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