The Census Bureau’s New Residential Construction report shows new home sales at a seasonally adjusted annualized rate or 673,000.
New Home Sales by Region
New home sales are down in everywhere but the tiny North-East region. However, sales are up year-over-year except for the North-East.
Lower interest rates have helped housing.
Yet, sales are about at 1963 level of 663,000.
Mike “Mish” Shedlock
Near me, they’ve run out of land to build on. So the trend is to tear down old residences and replace with high rise condos. The new condos cost more than a SFH with a garage and yard.
Lower rates have definitely helped housing in 2019, but it’s interesting to see existing home sales posting their 14th consecutive month of yearly declines. Looks like the law of diminishing supply in action. We may need sub-4-percent rates to sustain any sales growth.
The bubble distortion sure made a mess out of the chart.