The share of newly built single-family homes on the market is at a record high, according to Redfin’s latest data…(Redfin)
- 4.1% of U.S. single-family homes for sale in December were new construction, up from 25.4% a year earlier. This is the highest share on record.
- In December 2019 new construction made up 21.0% of homes for sale.
This may seem odd considering supply chains continue to be problematic. However, it is important to note that the increase in new construction has just as much to do with a decrease in existing home inventory as it does with an increase in new construction…
- Inventory of existing homes fell 14.2% year over year in December.
- New home inventory, meanwhile, was up 34.8% year-over-year.
Sheharyar Bokhari, Redfin economist, said new homes tend to take longer to sell which is another reason for the increase…
- “Existing homes tend to be less expensive and fly off the shelves faster, so people who are just getting into the market should speak to their lender and agent about preparing to act quickly when an existing home that meets their criteria does hit the market this winter.”