Builders Already Feeling Pandemic Pinch

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Sharp Credit – Credit News – Credit Information

New home building, which only recently and belatedly
caught fire, is already feeling the effect of the COVID-19 virus response. The
National Association of Home Builder (NAHB) recently did a quick on-line survey
of its members and 81 percent said they had noticed a slowdown in buyer
traffic.
The survey was conducted between March 18 and March 23. It was a small
sample, 308 responses, but more than half came from single-family builders and
more than two-thirds were from company owners or CEOs.

The survey listed seven possible
impacts of the coronavirus and asked if each has so far had a major, minor, or
no adverse effect on respondents’ businesses. Forty-six percent of
builders cited a major downturn in buyer traffic and 35 percent said there was
a minor reduction. Other adverse impacts were on the supply of N95 respirator
face masks, delays in plan reviews and building department inspections,
problems with material and product supplies, and changes in how much they are
willing to pay for a new home. 
Willingness of workers to report to
construction sites was the least common problem on the list so far, although
even that one was reported as having at least a minor negative impact on 42
percent of respondents’ businesses.

 

 

While some states and local
governments had invoked full or partial shutdowns of non-essential businesses
or ordered reductions in on-premises workers by the time the survey closed,
many areas are still operating at full capacity. It is worth noting that the California Association of Realtors ordered its members
to stop all face-to-face sales activities to comply with the governor’s
self-isolation directive
while the survey was underway. This, of course, includes
property showings



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