(Disclosure: Rose Law Group represents Meritage Homes.)
By Vincent Salandro | Builder
The first day of the Builder 100 Conference at the Ritz-Carlton Laguna Niguel in Dana Point, California, provided attendees with insight on the state of the housing market, actionable takeaways from top executives in the sector, and a peek into the future with a keynote on artificial intelligence.
Here are 10 takeaways from the four education sessions from day one of the Builder 100 Conference:
- It is hard to describe the current housing market with one blanket statement. During the economic outlook, Zonda chief economist Ali Wolf shared that metro locations across the country are experiencing different housing situations. Approximately 62% of the largest metro markets are overperforming historical averages, according to the Zonda Market Ranking, but in many major metros, it is difficult to sell homes. Wolf said despite the different realities across the country, generally it is taking a lot of effort, resources, and money to secure sales.
- The builder’s advantage over the resale market remains in play. Consistent with 2023, the new-home market continues to benefit from limited inventory in the resale market. Builders benefit from the ability to offer financial incentives and rate buydowns, options that cannot be offered in the resale market. While resale inventory in April was at its highest level since April 2020 and is higher year over year in several Texas and Florida markets, it remains 35% below 2019 levels nationally, according to Wolf. A survey of builders indicates nearly two-thirds are facing little competition from the existing-home market.
