New Home Sales Soar
Taylor Morrison, the fifth largest homebuilder in the country, reports a record monthly gain in orders for new-home construction—and a rise of 94% annually—in June. The builder also reports recording sales across 22 major housing markets and 11 states. “To experience our best sales month in company history amid a pandemic, amid transitioning our business to a virtual environment seemingly overnight, and amid the economic and psychological impact on consumers, speaks volumes to not only Taylor Morrison’s resiliency but our customers’ resiliency, too,” Sheryl Palmer, chair and CEO of the company, told CNBC.
The Arizona-based builder says nearly all of its sales offices have reopened, but they are increasingly offering virtual tours for customers who prefer to shop from a distance. Palmer says new online tools and technology are allowing customers to do in-person, self-guided tours as well. The builder also launched a virtual appointment system, where home shoppers can maneuver through the home buying process virtually. The technology has “forever changed the way we do business,” Palmer told CNBC in an earlier interview in June.
Low mortgage rates and a shortage of existing homes may be prompting more buyers to seek new construction. Taylor Morrison also conducted a buyer survey in May and found customers’ number one desire is better home technology to allow for remote working and homeschooling. The second and third highest desires are the need for more space and more individual rooms, notably home offices.
Nationally, sales of new homes plummeted in March as the COVID-19 pandemic raged. But by May, new-home sales had rebounded 13% annually, Census Bureau data shows. Homebuyers are showing patience and a desire to build homes from the ground up: Builders report the biggest increase in sales among homes that have not yet been started.
Below is the link to the article on CNBC.