After a surprisingly strong April when new home sales hit an annualized rate of 679,000, new home sales returned to Earth in May with sales of 626,000. Nonetheless, YTD sales are up 4%.
What’s worrying: New home inventories have been steadily rising and are now at 6.4 months, with the six highest readings since August 2011, all occurring since September 2018.
This means builders should build fewer costly homes
and more entry-level.
From Dr. Elliot Eisenberg, The Bowtie Economist
While this information is based on nationwide data, it applies locally as well. We see new construction homes below $300,000 moving rapidly, while homes over $300,000 have extended days on market.