The pace of new multifamily construction, however, jumped, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
New-home inventory rose to 444,000 homes in May from 437,000 homes in April, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.
New-home completions rose during the month, however, with the increased inventory representing a rare bright spot in an otherwise gloomy government report.
The rate of new single-family home sales fell 16.6% from March’s revised number, while the median sales price jumped to $450,600 from March’s revised median house price of $435,000.
“Builders are responding to higher mortgage rates and are chasing rising rents, with fewer homebuyers and more renters being forced to renew their leases.” — NAR Chief Economist Lawrence Yun
Low inventory and rising interest rates have reduced prospective homebuyer purchasing power.
Affordability and supply-chain issues continued to weigh on the sales of new single-family residences.
“More groundbreaking is welcome news for a supply-starved housing market.” — First American deputy chief economist Odeta Kushi
StorageCafe conducted a study on construction in the 50 largest metros — and among them, Phoenix-Mesa-Chandler ranks fourth for growth.
“Builders are entering 2022 with backlogs that they are having a hard time completing due to material and labor shortages, and new-home prices are sitting near a historic high.” — First American Deputy Chief Economist Odeta Kushi