• For Brokers & Agents
  • For Builders & Developers
  • Advertise
  • About
  • Help
  • Pricing
LotNetwork Logo
  • Home
  • Find Lots & Land
  • Blog
  • Resources
    • Buying Lots & Land
    • Selling Lots & Land
    • Building a Home
    • House Plans
    • Financing & Loans
  • Sell Lots & Land
  • Log In
Menu
  • Home
  • Find Lots & Land
  • Sell Your Lots & Land
  • Blog
  • Tips: Buying Lots & Land
  • Tips: Selling Lots & Land
  • For Pros: Brokers & Agents
  • For Pros: Builders & Developers
  • Resources: Building a Home
  • Resources: House Plans & Design
  • Resources: Financing & Loans
  • Advertising
  • About Us
  • Support
Like us on facebook
Back to Blog

Home Builder Loan Market…Not So Terrible?

Share this post:

Whether it’s houses, land or lots for sale, too many in the real estate industry have seen deals fall apart because of the tight lending market over the past few years. Words to describe the lending market in recent years might include: “terrible”, “non-existent” or “impossible”…making a report of “neutral” something to celebrate.

The NAHB recently issued its “Survey on Acquisition, Development & Construction Financing” for the second quarter of 2012, which describes homebuilders’ and developers’ current experiences with the availability of loans for land acquisition, land development and home construction.

What can we glean from the survey?

  • Our key takeaway is that we may be seeing market stability in the availability of loans for homebuilders and developers. For the past few quarters most builders and developers say it has been neither “Better” nor “Worse”.
  • The lending market generally has gone from heightened tightening and negativity from 2006 to 2009, to decreasing negativity over the past few years. It is near the point of being neutral now.
  • This suggestion of stability and neutrality may be an additional signal of an overall housing market bottom, which could indicate that there are good things coming for the homebuilding industry.
  • In the near term we don’t expect to see dramatic increases in loan availability for builders and developers. It’s a different world out there today. Many lenders and regulators still are digging themselves out of the rubble of the downturn, so this will be a gradual process.
  • Fewer homebuilders and developers are putting new projects on hold to wait until the financing market improves. Over the past few years the percentage that were shelving new construction has dropped from an average of more than 70% to about 50% this past quarter (excluding multifamily construction).
  • Low appraisal values are reported as the most common reason customers can’t get loans for new homes. In a previous post, LotNetwork.com observed that issues with the appraisal system likely have been playing a part in hampering the recovery of the housing market.

The trend toward stabilization in the availability of loans, and the fact that half of the respondents still are putting deals on hold, reflects the lingering uncertainty in the housing industry and the economy. What it comes down to:  No one is overly optimistic or overly pessimistic, but frankly this is a vast improvement over the negativity of the past few years.

What are you seeing in your markets?

Filed Under: Builder/Developer Resources Tagged With: appraisal, builder, construction financing, home builder, Home construction, homebuilding, house, housing markets, land, land acquisition, land development, loans for homebuilders, lot, lots for sale, NAHB, new homes, Real estate

Share this post:

About Steve Sanders at LotNetwork.com

Steve is an entrepreneur and author, who also is an experienced real estate developer and corporate/real estate attorney. He is a Founder of LotNetwork.com, the nation's premier web site for buyers and sellers of residential lots and land.

  • View all posts by Steve
  • Follow Steve on LinkedIn
Search Lots and Land Sign up to sell

Sign Up for our Newsletter

Stay informed!
Get expert advice and tips
with our FREE e-newsletter.

Recent Posts

  • How to Sell Lots and Land (and Why it’s Different from Selling Homes)
  • What does it Cost to Build a House?
  • Convert Square Feet to Acres for Land
  • How to Buy Land at Auction: Benefits and Terms for Buyers
  • Learn Why Agents & Brokers Sell Land at Auctions

Learn how LotNetwork.com can help you!

Agent and Broker Resources Builder and Developer Resources

Topics

  • Agent/Broker Resources
  • Builder/Developer Resources
  • Industry News & Resources
  • Other
  • Technology & Tools
  • Tips for Building & Buying Homes
  • Tips for Buying Lots & Land
  • Tips for Selling Lots & Land
View Index of Articles

Learn about advertising on LotNetwork.com

  • Alabama Lots
  • Alaska Lots
  • Arizona Lots
  • Arkansas Lots
  • California Lots
  • Colorado Lots
  • Connecticut Lots
  • Delaware Lots
  • District of Columbia Lots
  • Florida Lots
  • Georgia Lots
  • Hawaii Lots
  • Idaho Lots
  • Illinois Lots
  • Indiana Lots
  • Iowa Lots
  • Kansas Lots
  • Kentucky Lots
  • Louisiana Lots
  • Maine Lots
  • Maryland Lots
  • Massachusetts Lots
  • Michigan Lots
  • Minnesota Lots
  • Mississippi Lots
  • Missouri Lots
  • Montana Lots
  • Nebraska Lots
  • Nevada Lots
  • New Hampshire Lots
  • New Jersey Lots
  • New Mexico Lots
  • New York Lots
  • North Carolina Lots
  • North Dakota Lots
  • Ohio Lots
  • Oklahoma Lots
  • Oregon Lots
  • Pennsylvania Lots
  • Rhode Island Lots
  • South Carolina Lots
  • South Dakota Lots
  • Tennessee Lots
  • Texas Lots
  • Utah Lots
  • Vermont Lots
  • Virginia Lots
  • Washington Lots
  • West Virginia Lots
  • Wisconsin Lots
  • Wyoming Lots
  • LotNetwork

© 2012-2023 LotNetwork, LLC. All rights reserved. LotNetwork,
the LotNetwork logo and The One Site for HomeSites are
trademarks of LotNetwork, LLC (Reg. U.S. Pat. & Tm. Off.).

  • Home
  • About
  • Contact Us
  • Find Land
  • Sell Your Land
  • Resources/Blog
  • Privacy Policy
  • Terms of Use