It appears as though some developers have pushed past last year’s supply chain struggles as a record number of homes on the market are newly built and ready for occupancy.
New data out from Redfin shows reveals that 34.1 percent of U.S. single-family homes for sale in December were new construction— the highest share on record! That’s up from 25.4 percent in December 2020.
Perspective, however, is key. Overall inventory dropped to a record low in December, down 14.2 percent year-over-year, to a record-low 1.8 months of supply. For new homes, Redfin notes there was six months of supply and inventory was up 34.8 percent.
U.S. Census notes that the median sale price of new homes increased 3.4 percent last month to $377,700, year-over-year.
“A lot of pre-owned homes are being listed, but they are just selling off so quickly–typically in a matter of days–while new homes take longer to sell,” said Redfin Economist Sheharyar Bokhari. “So as a homebuyer, you’re increasingly likely to see new builds when you look up homes for sale in your target area. Existing homes tend to be less expensive and fly off the shelves faster, so people who are just getting into the market should speak to their lender and agent about preparing to act quickly when an existing home that meets their criteria does hit the market this winter.”
Where are said newly built homes? Not in California.
According to Redfin, San Diego, Anaheim and L.A. had the smallest shares of new-construction inventory, at 3.1 percent, 3.8 percent and 4.4 percent, respectively.
Houston, on the other hand, had the largest share of new construction for sale in the top 50 metro areas. Some 39.5 percent of for-sale homes were newly built in the fourth quarter, followed by Minneapolis (38.3 percent) and San Antonio (37.5 percent).