One-third (33.4%) of single-family homes for sale in the U.S. in the first quarter were newly built, essentially unchanged from a year earlier but down from a record-high 34.5% two years earlier. The portion of housing supply that’s newly built is still roughly double pre-pandemic levels, according to a report from Redfin..

 

According to Redfin, the share of newly built housing supply is roughly double pre-pandemic levels. The new-home market has benefited from tight resale inventory as many homeowners are staying put because of elevated mortgage rates. Rates remain significantly above pre-pandemic and pandemic levels, and many would-be sellers are opting to hang onto their low rate instead of moving and taking on a higher rate. Additionally, the new-home share of inventory is also benefiting from an increase in single-family construction levels.

The share of newly built for-sale supply has declined slightly from its 2022 peak because total inventory has begun to increase and more homeowners are beginning to list their homes on the market. At the same time, Redfin says builders have eased slightly on housing starts due to mortgage rates and slightly tempered demand.

Builders are also working through homes started in 2021 and 2022: For new-construction homes, there were 8.3 months of supply on the market nationwide in March, according to Redfin. For existing homes, there were 3.2 months of supply on the market.

Source: redfin.com