A recent article published in HousingWire Magazine indicates that builder confidence reached a 10-year high at the end of 2016. This could lead to an increase in construction activity as the new year continues and may ease some of the entry-level housing issues currently in play in the real estate marketplace.
Builder Confidence Meets Short Supply
Construction firms in some areas of the country are currently experiencing a shortage of available lots, making it difficult to acquire property for building in these regions. Qualified labor has also been in short supply in recent years. Some analysts blame the housing crisis for this development; some skilled workers who lost their jobs during this serious market downturn may have moved on to other careers and are no longer seeking work in the construction sector.
Mortgage Rates Still a Concern
Builder confidence aside, builders will also be keeping a close eye on the interest rates set by the Fed this year. Expected rate hikes may put a damper on demand for new construction and may lower the profitability of planned building projects in the commercial marketplace. By maintaining a close watch on the adjustments made in the mortgage rate, builders can ensure the most effective response and the best business plan for dealing with these minor bumps in the road to profitability.
Lakeside Title Company Serves Builders
At Lakeside Title Company, we offer title services for builders to help your company achieve greater success and to reduce your paperwork when managing a project or negotiating a sale. We deliver the most effective solutions for your construction company and go the extra mile to ensure that you are satisfied with our services.
To learn more about our array of commercial real estate services and how they can help your construction company lead and succeed, call us at 410-992-1070. We look forward to working with you!