New Home Sales Plummet in July

2022-08-23T10:18:28-05:00

By Danushka Nanayakkara-Skillington on August 23, 2022 • New home sales in July fell to their lowest level since January 2016 as the industry grapples with supply chain disruptions that are delaying new home building projects and raising housing costs as mortgage interest rates increased. The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in July at a 511,000 seasonally adjusted annual pace, which is a 12.6% decline over downwardly revised June rate of 585,000 and is 29.6% below the July 2021 estimate of 726,000. Sales-adjusted inventory levels are at an elevated 10.9 months’ supply in July. However, only 45,000 of the new home inventory is completed and ready to occupy. This count has been going up in recent months and is up 40.6% compared to a year ago. Moreover, sales are increasingly coming from homes that have not started construction, with that count up 22.6% year-over-year, not seasonally adjusted (NSA). The median sales price increased to $439,400 in July, up 5.9% compared to June and is up 8.2% compared to a year ago. Nationally, on a year-to-date basis, new home sales are down 15.7% for the first seven months of 2022. Regionally, on a year-to-date basis, new home sales fell in all four regions, down 14.9% in the Northeast, 26.5% in the Midwest, 13.4% in the South, and 15.7% in the West. Related ‹ Employment Situation in July: State-Level AnalysisTags: economics, home building, housing, new home sales, sales, single-family

New Home Sales Plummet in July2022-08-23T10:18:28-05:00

New Home Sales Plunge in June

2022-07-26T23:18:50-05:00

By Danushka Nanayakkara-Skillington on July 26, 2022 • New single-family home sales declined in June due to rising mortgage rates and worsening affordability conditions. Per Freddie Mac, the 30-year fixed rate mortgage was 5.10% at the end of May and climbed to 5.70% by the end of June. The U.S. Department of Housing and Urban Development and the U.S. Census Bureau estimated sales of newly built, single-family homes in June at a 590,000 seasonally adjusted annual pace, which is a 8.1% decline over the downwardly revised May rate of 642,000 and is 17.4% below the June 2021 estimate of 714,000. Sales-adjusted inventory levels are at an elevated 9.3 months’ supply in June. The count of completed, ready-to-occupy new homes is just 39,000 homes nationwide. Moreover, sales are increasingly coming from homes that have not started construction, with that count up 25.1% year-over-year, not seasonally adjusted (NSA). The median sales price dipped to $402,400 in June, down 9.5% compared to May, but up 7.4% compared to a year ago. Nationally, on a year-to-date basis, new home sales are down 13.4% for the first half of 2022. Regionally, on a year-to-date basis, new home sales fell in all four regions, down 12.1% in the Northeast, 24.8% in the Midwest, 12.6% in the South and 9.6% in the West. Related ‹ Housing Demand Flattens as 1st-Time Buyers RetreatTags: economics, home building, housing, new home sales, sales, single-family

New Home Sales Plunge in June2022-07-26T23:18:50-05:00

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