With housing inventory at an all-time low, homebuyers are increasingly turning to newly built single-family homes, representing 31.4% of homes on the market, the highest share of any second quarter on record.

Driving Factors

New homes now account for nearly twice as much of total inventory as they did pre-pandemic in the second quarter of 2019; the share of new homes increased to nearly 35% in the first quarter of 2022 from 16.7% in the 2019 second period. This jump in inventory can be attributed to three driving factors, according to a𝓡 new repoౠrt by Redfin.

First is the surge in demand during the pandemic, fueled by 澳洲幸运5官方开奖结果体彩网:remote work and record-low 澳洲幸运5官方开奖结果体彩网:mortgage rates. Second is the shortage of existing homes in inventory due to homeowners feeling locked into their current low mortgage rates. Third is the leftover inventory builders face as high mortgage rates deter buyers.

Newly built single-family homes for sale increased 4.5% year over year in June while existing homes dropped 18%.

Permits Still On the Rise

Despite already-high inventory, U.S. single-family homebuilding surged in July and 澳洲幸运5官方开奖结果体彩网:permits𒁃 for future construction increased. New homes in inventory should boost the overall supply of for-sale homes, as builders expect 澳洲幸运5官方开奖结果体彩网:homebuyers' demand to remain strong if interest rates don’t incre🌠ase.

"Housing generally has shown resilience, but Fed officials may overlook this latest news of strengthening demand in the economy when it comes to judging whether to hike rates again this year because of the progress made on the inflation front," Christopher Rupkey, chief economist at FWDBONDS in New York, said in a Reuters news story.