The monthly durable goods order report is due out today. That means big products that are designed to last at least three years, like household appliances. We recently learned that new home sales were up 14% in September compared to 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.
âIn fact, 95% of manufacturers are currently reporting device delays,â 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.
âBuilders recommend that buyers make design decisions early, as this process is lengthening. And it’s more expensive, âhe said.
The situation is not new and Rick Palacios Jr. of John Burns Real Estate Consulting said home builders are starting to adapt.
âA big part of it is just realizing that things are going to take weeks and weeks longer than you expect,â he said.
Home builders told him they were sourcing sooner, buying alternative brands and using more local warehouses to have devices nearby when needed.