by Calculated risk on 05/08/2022 02:06:00 PM
Today, in the Risk Calculated Real Estate Newsletter: New home cancellations increased sharply in the second quarter
First, some quotes from some of the Q2 SEC filings:
“We believe that recent interest rate increases through 2022 have caused buyer concerns, affordability concerns, and an increase in cancellations.” , Taylor Morrison Q2 SEC Filing
“The scale and speed of these recent price increases has led many buyers to pause and reconsider purchasing a home, resulting in lower aggregate demand and an increase in 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 saw a higher-than-normal cancellation rate during the second quarter of 2022,” LGI Homes Q2 SEC file
Below is a table of the selected public construction works and the currently reported cancellation rate (I’m still collecting data). There are some seasonality to cancellation rates.
Disclaimer: Cancellation rates are from SEC filings only, and although considered reliable, they are not guaranteed.
Cancellation rates increased significantly in the second quarter.
There is a lot in the article. You can subscribe at https://calculatedrisk.substack.com/