Zillow senior economist Aaron Terrazas labeled the new home sales market as “haltingly progressive,” over the past year, but says now the market may reverse itself.
While builders recognize the searing demand from homebuyers, especially in the affordable, starter-home segment of the market, “building conditions right now just aren’t cooperating,” says Zillow’s Terrazas. Citing competition for skilled labor, cost of materials, and the lack of buildable, desirable, affordable land are just three major factors undercutting builders. “Recent trade actions have boosted the wholesale prices of key home building materials… In a market where demand outpaces supply, consumers ultimately pay the price for these policy decisions.”
February new home sales fell 0.6 percent from January, to 618,000 units (SAAR), the third straight month of declines compared to the month prior. New home sales were up 0.5 percent year-over-year. The median February new home sales price was $326,800 (non-seasonally adjusted), up 9.7 percent from a year ago. Inventory of new homes available for sale rose 16 percent from a year ago.
Advertisement
Related Stories
Trends
These Design Trends Get the Thumbs-Down From Boomers
Whether it's garage doors dominating a home's façade, outdated smart home features, or walk-in closets off the bathroom, homeowners in their 60s, 70s, and 80s have opinions
Trends
New-Home Trends: Home Sizes Shrink Further and Personalization Has Power
The National Association of Home Builders' latest new-home trends report shows homebuyers prefer fewer square feet, more personalization, and more tech
Trends
2024 Kitchen Trends
A recent survey of U.S. homeowners by Houzz reveals that open plans are in, tech is trending, and islands are for entertaining