By Manuel Gutierrez, Consulting Economist to NKBA

Inventory issues continue to plague new housing, depressing annual sales.

  • Continued low inventory result in an annual sales rate of just 772,000 units.
  • Over a quarter of homes sold are not yet under construction, with 65 percent in varying stages of completion.
  • Only 9 percent of new homes for sale are in move-in ready, compared with historical averages of 20-25 percent.
  • Strong demand coupled with low inventory continues to inflate house prices.
  • The average price of a new home in February was $511,000, a 3.4 percent gain over January and a steep
    25 percent year-over-year increase.
  • February’s drop in home sales is mainly driven by declines in the two largest regions: the South, with a
    2 percent decrease, and the West, with a 13 percent fall off.