Sales of new construction homes are stalled due to Hurricane Sandy, but the weather shouldn’t have a lasting effect on the homebuilding business, leaders in the construction industry told the Wall Street Journal today.
“It’s logistically a bit of a challenge to settle homes right now,” Martin Connor, chief financial officer of Toll Brothers, the nation’s largest homebuilder, told the Journal. “The homes are done, but you’re dependent on the mortgage company, the insurance company, the bank, the title company to be up and running to put the sale to bed,” he said. “And a lot of people aren’t able to do that, especially insurance companies, who aren’t anxious to write new policies right now.
While much of Toll’s business is on the Eastern seaboard, Connor said he does not expect the sales of new homes to droop for more than a week or two. “This type of weather event has limited impact on the market … it doesn’t have a long-term impact.” [WSJ] –Guelda Voien