By Manuel Gutierrez, Consulting Economist to NKBA
The 263,000 homes sold to date are 13 percent below the first four months of last year.
- Sales shortfalls were seen across all four regions, led by a 20 percent decline in the South, with drops of 15 percent and 14 percent, respectively for the Midwest and West.
- Inventory of new homes continues to grow, rising by 40 percent from last year to 444,000. The increase since the beginning of the year is mostly attributable to homes that have not yet been started.
- Inventory of homes not yet built rose by16 percent, accounting for 27 percent of the total inventory. Builders are still unable to complete homes on a timely basis, finding themselves with a greater number of homes under construction.
- Inventory of completed, move-in-ready homes remains very low, at just 38,000, close to its historical bottom.
- Despite the sales slowdown, house prices continue to increase. The median price of a new home was nearly 20 percent higher than a year ago, and the average, 31 percent higher. The differential reflects many homes being sold in upper price ranges.
