Builders Continue to See Solid Business in September
October 18, 2019
October’s Builder Intelligence Report, compiled by BTIG in partnership with HomeSphere, indicates that business remained solid for home builders from August, with a slight decrease as seasonality kicked in.
More builders also reported raising base home prices while lowering sales incentives. It’s likely they’re still a little wary of spooking any price-sensitive customers at this point. BTIG believes consumers are still highly-attuned to pricing while field conditions continue to remain competitive in most major markets.
Highlights from the Latest Builder Intelligence Report
Sales and traffic. Trends softened a bit from an unseasonably positive summer. In September, 45 percent of respondents reported year over year increases in sales orders per community as compared to 49 percent in August and 34 percent from September 2018.
Expectations. Thirty-three percent of builders reported sales as better than expected versus 21 percent who reported that sales were less than expected, while more respondents also reported traffic as better than expected.
Pricing and incentives. August’s record-low “pricing power” firmed up a bit in September, with 17 percent of builders raising most or all base prices versus only 7 percent last month.
Input costs. Cost headwinds are still around but could be abating based on year over year data. In September, 28 percent of builders saw labor costs increase, while 38 percent saw materials increase and 30 percent saw land costs rise. That compares to 61 percent, 63 percent and 47 percent, respectively, from a year ago.
HomeSphere/BTIG Builder Intelligence Report
HomeSphere partners with the research firm BTIG to create a monthly report to provide our builders and manufacturers with exclusive and timely insights about the market.
To compile the report, we survey HomeSphere’s 2,600 regional and local home builders about sales, traffic, pricing, labor costs and other key industry metrics.
How to Get The Monthly Report
If you are a builder and would like to participate and receive the monthly report for free, request an invitation below: