flexiblefullpage - default
Currently Reading

New Home Sales Slowed in March Despite Increased Inventory

billboard - default
New-Construction Projects

New Home Sales Slowed in March Despite Increased Inventory

New home construction is surging across the country, but only a small number of homes have actually been completed


April 28, 2022
New housing construction
Image: Stock.adobe.com

New home sales are declining year-over-year after soaring during the first months of the pandemic, but housing supply is on the rise, says Bill McBride in the CalculatedRisk Newsletter. New home sales were at a seasonally adjusted annual rate (SAAR) of 763 thousand in March, 8.6% below the revised February rate of 835,000, and 12.6% below the March 2021 estimate of 873,000. 

Meanwhile, months of supply rose to 6.4 months in March from 5.6 months in February, but total inventory also includes new homes under construction as well as those not yet started, the share of which is at a record high 105 thousand.

The inventory of completed homes for sale was at 35 thousand in March, up from the record low of 33 thousand in several months in 2021 and early 2022. That is just over 0.5 months of completed supply (red line). This is about half the normal level.

The inventory of new homes under construction is at 4.2 months (blue line) - well above the normal level. This elevated level of homes under construction is due to supply chain constraints.

And 105 thousand homes have not been started - about 1.7 months of supply (grey line) - almost double the normal level. Homebuilders are probably waiting to start some homes until they have a firmer grasp on prices.

Read more

leaderboard2 - default

Related Stories

Housing Markets

10 Biggest Publicly Traded Home Builders Undeterred by High Mortgage Rates

Together, the 10 biggest builders recorded 77,255 new homes in Q1 2024, an increase of more than 18% from Q1 2023


Mortgage Rate Declines Could Boost Home Sales Following Months of Low Activity

Encouraging economic news bumped mortgage applications up by 2.6% for the week ending May 3


NAHB Announces Plan to Address the Housing Affordability Crisis

The National Association of Home Builders has outlined a 10-step plan that would increase the supply of single-family and multifamily for-sale and for-rent housing

boombox1 -
native1 - default
halfpage2 -

More in Category

Home builders can maximize efficiencies gained through simplification and standardization by automating both on-site and back-office operations 

Delaware-based Schell Brothers, our 2023 Builder of the Year, brings a refreshing approach to delivering homes and measuring success with an overriding mission of happiness

NAHB Chairman's Message: In a challenging business environment for home builders, and with higher housing costs for families, the National Association of Home Builders is working to help home builders better meet the nation's housing needs

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.