Construction of new single-family homes is up in 2021 compared to last year, but a new report shows that construction could be even higher than it is now if supply is able to keep up with demand.
Back in August, the demand for new homes rose for the first time since March. The increase was short-lived as demand then fell in September. However, a new report shows that demand bounced back in October.
It was much the same song when it came to home prices in August; they just keep going up and up and up.
Over the last few months, new home sales have stemmed the tide that saw sales decline in April, May, and June. But the modest increase seen in July and August's continued improvement doesn't hold a candle to what happened in September.
It appears that new home sales have fully shaken off the period of declines that saw sales drop in April, May, and June. That streak ended in July when new home sales held steady. And things got even better in August.
With inventory for existing homes consistently running well behind historical norms, homebuyers are increasingly pivoting to buying a newly built home instead.
Despite a dip in mortgage applications in July, 2021 had the second-strongest July since 2012, with new home sales unchanged from June.
For the fourth month in a row, mortgage applications for new home purchases have declined.
It appears that June's good news on the new home front was short-lived, as a new report shows that construction of new single-family homes declined in July.
For much of the year, one of the common concerns among would-be homebuyers is that there are simply not enough homes on the market. It looks like there might be a bit of a light at the end of that tunnel, especially for first-time homebuyers.
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