Growth in new home sales despite cost and supply constraints



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“After a downward trend for much of last year, new home sales seem to have leveled off over the past three months,” added Fannie Mae deputy chief economist Mark Palim. “With continued strong price increases in the existing domestic market, low mortgage rates and a limited number of existing homes for sale, demand for new homes should remain strong. A positive sign in the report on future sales is the further increase in the number of homes for sale at the end of the month, which reached its highest level since November 2008. ”

The Bureau and HUD calculated that the seasonally adjusted supply of new homes for sale at the end of the month was 367,000, corresponding to a 6.2-month supply at current sales rates, the highest since April last year. The median sales price for new homes was $ 390,500, compared with an average sales price of $ 446,000.

“This figure is not expected to grow significantly until some uncertainty about cost and delivery time has been resolved, because supply chain problems and other constraints will continue to stifle the pace of supply and sales,” Mangold said.

However, Mangold noted that the overall trend in home sales was higher than in previous years and that the recent decline in sales has begun to reverse.


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