LOS ANGELES (KNX) — Newly-built homes are taking up a record number of homes for sale across the United States, and the phenomenon is only increasing as demand continues to grow in the real estate market, experts said Monday.
More than 34% of single-family homes in the U.S. up for sale in December were new construction, taking up one third of the overall market. The numbers have been increasing over the last 10 years, but jumped further after the pandemic began, according to Redfin and Business Wire.
“Homebuilders have been busy trying to make up for the lack of existing homes on the market and keep up with high demand,” Redfin said in a statement.
The real estate brokerage also suggested that, since many homeowners opted to refinance or remodel instead of sell, the shortage of homes on the market has only intensified.
“Overall inventory dropped to a record low in December [with] inventory of existing homes [falling to] 14.2% year-over-year and there was a record-low 1.8 months of supply” the company continued.
“For new homes, there was 6 months of supply and inventory was up 34.8%.”
Redfin Economist Sheharyar Bokhari said while there are plenty of pre-owned homes being listed, no one could have prepared for how quickly they are selling.
“Typically in a matter of days — while new homes take longer to sell,” Bokhari said. “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.”
Research conducted by Redfin revealed that building permits were up 6.5% year-over-year in December 2021 — and also up 9% from just one month before — indicating that the supply and sales of newly built homes will continue into 2022.
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