Washington, DC, Feb. 27, 2013 -- Tight credit for builders along with a stretched lot and building supply system in many markets that are barely keeping up with demand are hurting home builders, according to the National Association of Home Builders.
“I talk to many of our builder members who are expressing increasing frustration that they can’t get access to construction loans to develop lots in markets where demand is on the upswing,” said NAHB Chairman Rick Judson in a press release.
“Not only is this keeping workers sidelined, it is frustrating potential home buyers and slowing the recovery.”
He noted that Though some metros are still struggling to recover, conditions in a growing number of markets are improving.
Meanwhile, creditworthy borrowers can’t obtain mortgages, inaccurate appraisals are leading to cancelled home sales, and rising building material prices and spot labor shortages are pushing up costs and slowing completion times, NAHB said.
The group said that banks, appraisers and regulators swung the pendulum too far and have failed to return to normal business practices.