By Calculated Risk
Here’s May mid-month home builder channel check I hinted at earlier. Builders are pushing prices w/little pushback, though some starting. Some builders are using price escalators & highest/best offer. Many limiting pre-sales, shifting to spec, & pricing home later in build cycle.
#Dallas builder: “Not selling build jobs in May, starting specs only, and not selling until drywall. Costs are too out of control for us to take the inflation risk on build jobs. So sales are way down.”
#SanAntonio builder: “Only selling specs at Sheetrock stage. Last month, it was frame stage.”
#Austin builder: “Stopped sales until we pour a foundation. Lumber too erratic to sell prior. I know others have gone to a bid process. I have heard all parties, including that people who win the bid, feel like they have lost.”
