Local news reporter Ryan Richardson for The Owensboro Times reports Kentucky-based Jagoe Homes has laid off approximately 18% of personnel this week. Co-owner Bill Jagoe tells Richardson it’s an unfortunate reflection of the downturn in the market and the issue is not specific to Owensboro, as the industry grapples with higher interest rates and inflation, supply and labor shortages, and lower consumer confidence.
Meanwhile, the National Association of Home Builders (NAHB) reported in November that builder confidence dropped for an 11th straight month — marking the lowest confidence reading since June 2012, with the exception of the onset of the pandemic in the spring of 2020.
“Higher interest rates have significantly weakened demand for new homes as buyer traffic is becoming increasingly scarce,” NAHB Chairman Jerry Konter said in a release.
Similarly, a November report from Fannie Mae showed consumer confidence in housing hit a new low since the created the Home Purchase Sentiment Index (HPSI) in 2011.
The local housing market had been faring better than the rest of the country, but October’s report finally showed a decline — and reflects the struggles home builders such as Jagoe are about to face.
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