Key New Home Sales Points
- New Home Sales Sales of new single‐family houses in February 2022 were at a seasonally adjusted annual rate of 772,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development.
- This is 2.0 percent below the revised January rate of 788,000 and is 6.2 percent below the February 2021 estimate of 823,000.
- The median sales price of new houses sold in February 2022 was $400,600. The average sales price was $511,000.
- The seasonally‐adjusted estimate of new houses for sale at the end of February was 407,000. This represents a supply of 6.3 months at the current sales rate.
To put the annualized sales in perspective, the actual number of homes sold in February was 65,000.
New Home For Sale by Stage of Construction
Month’s Supply of New Homes For Sale
The supply of new homes for sales is calculated by dividing the total number of homes for sale over the number of homes sold in one month.
The supply is overstated. 105,000 homes have not been started and only 37,000 are completed.
Builder Speculation
There are 259,000 homes under construction that have not been purchased.
This is a high number historically and it is at a time of rapidly rising mortgage rates with sales declining.
Existing Home Sales Dive 7.2 Percent Wiping Out January’s Big Month
Also note Existing Home Sales Dive 7.2 Percent Wiping Out January’s Big Month
Mortgage rates are up, sales are down big. Get used to this story.
This post originated at MishTalk.Com.
Thanks for Tuning In!
Please Subscribe to MishTalk Email Alerts.
Subscribers get an email alert of each post as they happen. Read the ones you like and you can unsubscribe at any time.
If you have subscribed and do not get email alerts, please check your spam folder.
Mish
WASHINGTON, D.C. (March 23, 2022) – Mortgage applications decreased 8.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending March 18, 2022.
The Market Composite Index, a measure of mortgage loan application volume, decreased 8.1 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 8 percent compared with the previous week. The Refinance Index decreased 14 percent from the previous week and was 54 percent lower than the same week one year ago. The seasonally adjusted Purchase Index decreased 2 percent from one week earlier. The unadjusted Purchase Index decreased 1 percent compared with the previous week and was 12 percent lower than the same week one year ago.