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.

“Only 9 percent of new homes for sale have been completed, far below the 20-25 percent average.”