The growth rate of newly built single-family homes has begun to slow. According to the National Association of Home Builders, the 3.5% month-over-month sales drop is a necessity. The growth rate remains strong, the association says, and the historic margin of new home sales exceeding construction desperately needed some sort of sales slowdown. September sales rates remained 32% higher than one year ago. Housing demand remains strong as mortgage rates stay low, says NAHB.
Looking back to the spring, the April data (570,000 annualized pace) marks the low point of sales for the current recession. The April rate was 26% lower than the prior peak, pre-recession rate set in January. Sales have mounted a historic growth rate since that time.
Sales-adjusted inventory levels marked a third consecutive month below a 4 months’ supply, coming in at 3.6 in September. The count of completed, ready-to-occupy new homes is just 48,000 homes nationwide.
Advertisement
Related Stories
Sales + Marketing
New-Home Sales and Navigating the 3 D’s: Death, Divorce, and Downsizing
Here’s how home sales experts manage challenging lifestyle changes with and for their buyers
Housing Policy + Finance
Even With Inflation Running Hot and Elevated Mortgage Rates, Buyer Demand Rises
Mortgage rates will likely stay high for the next few months, but that doesn't seem to be deterring homebuyers
Market Data + Trends
A Look at Homeownership Rates Across the Nation
Data for homeownership rates in the 100 largest US cities show Port St. Lucie, Fla., in the top spot, while West Virginia is the state with the most homeowners