Monthly durable goods orders report must come today. This means large products designed to last at least three years, such as household appliances. We recently learned that new home sales have up 14% in September from August. And new homes need new things that have been hard to come by lately.
The main complaint from home builders is not about the availability of wood or paint. These are household appliances, according to Robert Dietz, chief economist of the National Association of Home Builders.
“In fact, 95% of manufacturers are currently reporting device delays,” he said.
Many homes sold in September have yet to be built. Deitz said. However, it’s not too early for these buyers to start thinking about furnishings.
“Builders recommend that buyers make design decisions early, as this process is lengthening. And it’s more expensive, ”he said.
The situation is not new and Rick Palacios Jr. of John Burns Real Estate Consulting said home builders are starting to adapt.
“A big part of it is just realizing that things are going to take weeks and weeks longer than you expected,” he said.
Home builders told him they were sourcing sooner, buying alternative brands and using more local warehouses to have devices nearby when needed.