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Homebuilding across the country will slow sharply in 2022 as mortgage rates rise, scaring off potential buyers.Construction of single-family homes begins down nearly 19% Building permits fell 17% in September from a year earlier, according to the Census Bureau.
Building permits are seen as a measure of future construction. Home sales fall in October 2022 ninth consecutive month.
U.S. homebuilders have performed exceptionally well early in the coronavirus pandemic. Interest rates fell to record lows, people were locked in their homes in search of more space, demand soared, and home prices jumped 40% in two years. Homebuilders can’t keep up.
But that reversed as interest rates rose and markets suffered sharp setbacks.
Three of the top 20 metro areas on the list are in Arkansas and five are in West Virginia.both states are among the poorest domestic.Arkansas Home Price Rankings third lowest In the country, according to the Arkansas Economic Development Council. 16 of the 20 metropolitan areas are in south or midwest.
The top metro area on the list is Bremerton, Washington, an hour’s ferry ride from Seattle to Naval Base Kitsap, the second-largest naval base on the West Coast.price is flat Compared to a year ago, the entire Seattle area and Kitsap County house median It sold for $505,471 in November, up about 1%.
Nashville Major League Analysis data comes from Census Bureau’s Building Permit Survey Ranking of the top 20 metro areas with the worst construction slowdown based on the reduction in building permits approved from January and February 2022 to September and October 2022.
The analysis used two months of data to account for monthly variation, and was limited to 236 metros with 100 or more permits in January and February, out of the 384 metros with available data. A metropolitan area typically includes a defined city, nearby cities, and suburbs.
Homebuilders have warned that high interest rates are likely to continue to worry buyers throughout 2023.
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