Kirk Tatom, president of Dallas-based Tatom Lending, agreed, citing construction costs as a factor. He said, “With new homes, you have a two-headed monster, with soaring prices for lumber and materials like copper, electrical wiring and chips that are getting more expensive.”
Sales of existing homes broke the downward trend slightly over the same period, according to the National Association of Realtors, with a seasonally adjusted annual sales of 5.86 million units, up 1.4% after four months of decline.
Tatom, however, said he also noted a “rollback of applications” for existing homes. He said, “We’re starting to see shoppers get discouraged and leave. Some of our clients have submitted 18 to 20 offers and cannot receive them. “
Tatom said potential buyers were being squeezed out despite higher wages as house prices rose higher.