Builder confidence in the market for new single-family homes unchanged from March
A year ago, in April, Putnam County saw 35 permits worth $6.9M (22 being new single-family homes). Two years ago (2022), 46 permits were issued for $9,177,568.
Construction permits, like the market itself, fluctuate, and 2024 saw 42 permits issued worth $8,903,850. Twenty-five April permits were for new single-family homes, according to Putnam County Mayor Randy Porter. Every permit helps infrastructure in the county. The fees collected in April generated $34,529.
The “strong” month of construction comes on the heels of word that builder sentiment was flat in April and the latest inflation data showing no improvement in the first quarter of the year while mortgage rates remained close to 7% over the past month.
Builder confidence in the market for new single-family homes was 51 in April, unchanged from March, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index.
The NAHB says the stagnant number “breaks a four-month period of gains for the index, which nonetheless remains above the key breakeven point of 50.”
“April’s flat reading suggests the potential for demand growth is there, but buyers are hesitating until they can better gauge where interest rates are headed,” said NAHB Chief Economist Robert Dietz. “With the markets now adjusting to rates being somewhat higher due to recent inflation readings, we still anticipate the Federal Reserve will announce future rate cuts later this year, and that mortgage rates will moderate in the second half 2024.”
According to the survey, 22% of builders cut home prices in April. That is down 24% from March and 36% from Dec. 2023. Average price reduction held steady at 6% in April, according to the survey of
The average price reduction in April held steady at 6% for the 10th straight month while the use of sales incentives ticked down to 57% in April from a reading of 60% in March. The survey, which has been administered for the last 35 years by the NAHB and Wells Fargo, gauges builders’ perceptions of current single-family homes and sales expectations for the next six months as “good,” “fair” or “poor.”
Here are Putnam numbers for prior years as a comparison:
| 2022 | 2023 | 2024 | |||
| Permits | Total Amount | Permits | Total Amount | Permits | Total Amount |
| 28 | 8,516,500 | 20 | 4,990,900 | 22 | 3,886,300 |
| 39 | 7,960,443 | 37 | 6,653,700 | 34 | 8,245,155 |
| 30 | 6,355,500 | 34 | 8,705,474 | 25 | 7,056,360 |
| 46 | 9,177,568 | 35 | 6,924,500 | 42 | 8,903,850 |
| 39 | 6,575,375 | 40 | 7,075,300 | ||
| 51 | 15,624,742 | 36 | 5,922,400 | ||
| 41 | 9,911,325 | 36 | 8,456,000 | ||
| 31 | 6,679,000 | 38 | 7,570,900 | ||
| 30 | 7,751,000 | 37 | 6,171,496 | ||
| 39 | 5,533,500 | 47 | 9,429,590 | ||
| 22 | 4,041,000 | 23 | 4,487,600 | ||
| 11 | 1,215,000 | 25 | 5,829,000 | ||
| 407 | 90,340,953 | 408 | 82,216,860 | 123 | 28,091,665 |
Copyright 2024 The Upper Cumberland Business Journal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Other stories you may want to check out:
