flexiblefullpage - default
Currently Reading

Low Inventory Slows New Home Sales at the Close of 2021

New-Home Sales

Low Inventory Slows New Home Sales at the Close of 2021

New home prices are up 20% year-over-year while a record 110,000 residential construction projects have yet to be started

December 27, 2021
construction inventory
Image: Stock.adobe.com

Though sales of single-family houses are rising on a monthly basis, November 2021 rates were down 14 percent year-over year at a seasonally adjusted annual rate of 744,000, according to the CalculatedRisk Newsletter. New home sales soared during the first months of the pandemic, but decelerated into 2021 as a result of limited supply and record-high prices. 

Despite hitting an all-time low of 33 thousand completed homes for sale earlier this year, inventory is back up to 39 thousand, and the inventory of homes under construction is at its highest since 2007, though supply-chain issues will likely delay many projects into the coming year.

Sales of new single family houses in November 2021 were at a seasonally adjusted annual rate of 744,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 12.4 percent above the revised October rate of 662,000, but is 14.0 percent below the November 2020 estimate of 865,000.

The months of supply decreased in November to 6.5 months from 7.1 months in October.

The all-time record high was 12.1 months of supply in January 2009. The all-time record low was 3.5 months, most recently in October 2020.

Read more

Related Stories

Housing Markets

Americans Relocating for Extra Living Space, Affordability. But Where To?

Rather than sticking around their hometowns and waiting for home prices to drop, renters and buyers are moving to new cities to find more affordable housing options

Market Data + Trends

Nation’s Top Home Builders Report Increase in Cancellations in Q2 2022

Fast-rising interest rates caused an uptick in broken contracts and new-home cancellations throughout the first half of 2022

New-Home Sales

Falling Mortgage Rates Motivate Some Buyers to Forge Ahead With Home Searches

Buyers formerly priced-out by elevated interest rates are continuing their home searches as borrowing costs drop to a four-month low

boombox1 -
native1 - default

More in Category

native2 - default
halfpage1 -

Create an account

By creating an account, you agree to Pro Builder's terms of service and privacy policy.

Daily Feed Newsletter

Get Pro Builder in your inbox

Each day, Pro Builder's editors assemble the latest breaking industry news, hottest trends, and most relevant research, delivered to your inbox.

Save the stories you care about

Lorem ipsum dolor sit amet lorem ipsum dolor sit amet lorem ipsum dolor sit amet.

The bookmark icon allows you to save any story to your account to read it later
Tap it once to save, and tap it again to unsave

It looks like you’re using an ad-blocker!

Pro Builder is an advertisting supported site and we noticed you have ad-blocking enabled in your browser. There are two ways you can keep reading:

Disable your ad-blocker
Disable now
Subscribe to Pro Builder
Already a member? Sign in
Become a Member

Subscribe to Pro Builder for unlimited access

Lorem ipsum dolor sit amet, consectetur adipisicing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.