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07-28-22 | News

NAHB Reports June Dive in New Home Sales

As Affordability of New Homes Decreases, New Home Sales Follows, According to the NAHB
by Staff

New home sales in June of 2022 were at their lowest since April 2020, due to the many constricting elements effecting housing right now.

During the month of June, new home sales fell to the lowest they have been since April of 2020. This drop, as reported by the National Association of Home Builders (NAHB), is due to a number of reasons including construction bottlenecks resulting in the heightening housing costs and slowing home building June has seen. According to the US Department of Housing and Urban Development as well as the US Census Bureau, the total sales of new, single-family houses dropped by 8.1% in June to 590,000 from May. On a yearly level, new house sales are down 13.4% for 2022.

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The NAHB assistant vice president for forecasting and analysis explained some of the details of these falling numbers, "Only 14% of new home sales in June were priced below $300,000. A year ago, it was 27%. Meanwhile, inventory levels are elevated and will contribute to near-term production declines as the market finds a new balance." The NAHB predicted this outcome, as they had noted previously that builder confidence was lowering, something that usually mirrors lowered sales later on.

https://www.nahb.org/news-and-economics/press-releases/2022/07/new-home-sales-plunge-in-june-on-rising-affordability-woes

Filed Under: NAHB, HOUSING, INFLATION, LASN
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