Share of Newly Built Single-Family Homes Holds in Q1
One-third (33.4%) of single-family homes for sale in the U.S. during Q1 were newly built, according to the latest data from Redfin, a national real estate brokerage. This figure is essentially unchanged from the previous year but slightly down from the record high of 34.5% two years ago.
Why it matters: The proportion of newly built homes remains about double the pre-pandemic levels, highlighting the ongoing shift in the housing market dynamics.
Context:
- The share of newly built homes has dipped slightly from its 2022 peak due to a modest increase in total inventory as more homeowners list their existing properties.
- Builders have eased up on new housing starts amid high mortgage rates and dampened demand.
Between the lines: Many builders are still working through the surplus of homes initiated in 2021 and 2022. Currently, the market has an 8.3-month supply of new-construction homes, compared to 3.2 months for existing homes.
What they’re saying: “Buyers are having a hard time finding single-family homes in their budget because not many homeowners are letting go of their houses, and those who are listing tend to price high,” said Nicole Dege, a Redfin Premier agent in Orlando, FL. “Builders have a better understanding of the current market, so they’re pricing fairly, offering mortgage-rate buydowns and providing other concessions to attract buyers.”
The bottom line: While the supply of newly built homes remains significant, the market faces a balancing act as builders and buyers adjust to current demand and economic conditions while sellers continue to mostly sit on the sidelines.
