by Calculated Risk on 8/05/2022 02:06:00 PM
Today, in the Calculated Risk Real Estate Newsletter: New Home Cancellations increased Sharply in Q2
A brief excerpt:
“The magnitude and speed of these recent rate increases has caused many buyers to pause and reconsider a home purchase, resulting in lower gross demand and higher cancellations during the second quarter.”, MDC Holdings Q2 SEC Filing
“New orders weakened during the second quarter of 2022 in many of our markets and we experienced a higher than normal cancellation rate during the second quarter of 2022”, LGI Homes Q2 SEC Filing
Here is a table of selected public builders and the currently reported cancellation rate (I’m still gathering data). There is some seasonality to cancellation rates.
Disclaimer: the cancellation rates are from SEC filings only, and while deemed to be reliable is not guaranteed.
Cancellation rates clearly increased in Q2.
There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/