We service one of the hotter RE markets of the last decade. There has been a definite shift in homeowner, buyer, general contractor and trades outlook and behavior in the last couple of months. Where before it was a whisper it is now out in the open. While there are some who still don’t believe and are moving on as if it’s May 2022 still. Here are a few examples.

Largest home builder in area has stopped building and sitting on a ton of inventory.

My largest builder has stopped building specs, sold one of his handful of inventory at almost cost.

Customs are slowing down at a good rate while still working through backlog for most of my GC’s.

Trades that were in the driver seat these last years are now calling the GCs looking for work.

Mortgage brokers report their offices are crickets. As in nothing. No takers.

Prices on homes dropping at 2-3% per month.

My remodel contractors still show strength.

Our backlog of work is down to about 6 months, from 18 at the high. 6 being more normal for us outside of 2008/09 where it was 2-3. But the replenish rate is dropping precipitously. Our pricing is holding. I’m told trades earlier in the building stage are beginning to show some pricing flexibility.

I’m not only ready and needing a break but looking forward to it. As we all know RE is local. That’s my neck of the woods, what are you seeing in yours?

Here we are seeing commercial projects coming up way short on bidding as compared to projections. School projects are coming in miles over projection. Commercial work looks like its going into a bit of a park mode. Less and less bid requests and those that are coming in are small and spec's are clearly damped down for budget.

The lag of increased costs is going to catch up at some point. How there is 9bn record spending already at the holidays can in no way shape or form be blamed on stimulus checks but I guess remote work and not buying gas, starbucks, eating takeout lunch every day, leaves money in peoples pockets. The stimulus checks didnt do squat for anyone. The only ones that came out in the postivie were the layed off unemployed who got a meager pay through it all and when that goes kaput you realize you shouldnt have taken the free ride.

Costs are catching up slowly, why so slowly I dont know. With the increasing cost of basic goods I'd have thought we'd have seen a clamp down on spending by now. Low brow crowd in my area would normally buy a ham and a turkey for the holiday.. nearly all I come in contact with chose one or the other. Its gonna hit sooner or later.

We are in a small-town rural area that caters to a lot of vacation/Second homes and retirees. Our economy is always a little different as is any smaller community. We haven't seen the big slow down we all have been expecting yet. All trades are still going gangbusters, but I am starting to see less bid requests coming in.

With the amount of foundations in the ground here, it will be good for at least another two years. Rural area in northern Michigan with very wealthy summer people. I don’t see any sign of a slowdown, but am watching closely for one. I too could use a break!

Interest rates have gone up, the fed has raised them 6 times this year

Inspite of this the last jobs report was better than expected which will provoke Powell to keep raising rates as he want job losses to slow down inflation

Odds are good that there will be a recession next year, although technically we are in one now

After that things should be better

In rural New England I'm seeing property sales slowing down. Stuff is staying on the market longer. However, building projects not based on loans seem to be doing well.

Lots of young people moved out of the cities, and they are fixing up houses vacated by old people. The restoration and repair money is out of pocket. With 400 mbs internet service reaching rural areas, web developers and office workers working from home can now live and work in small towns. If they learn where babies come from, we will be able to re-populate our schools, too.

What Harold said