by Calculated Risk on 8/23/2022 10:48:00 AM
Today, in the Calculated Risk Real Estate Newsletter: https://calculatedrisk.substack.com/p/new-home-sales-decrease-sharply-record-02a
The inventory of new homes under construction is at 7.33 months (blue line) – a new record and well above the normal level. This elevated level of homes under construction is due to supply chain constraints.
And a record 107 thousand homes have not been started – about 2.51 months of supply (grey line) – more than double the normal level. Homebuilders are probably waiting to start some homes until they have a firmer grasp on prices and demand.
This suggests we will see a sharp increase in completed inventory over the next several months – and that will put pressure on new home prices.
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