New home lot supply drops to cycle lows
The housing market is rebounding nicely and is on track for the best year since 2007. However, sentiment and purchases can turn on a dime if domestic, geopolitical, or equity-related uncertainty heightens.
August new home sales grew 18% year-over-year and our database shows builders are averaging about 2.0 sales per month per community nationally compared to 1.5 this time last year. The good news is complemented by slowing home price appreciation, mortgage rates sub-4.0%, and a broader stock market that hit the best year-to-date gain since 1997.
New home sales spiked this summer as consumers reevaluated whether now is a good time to buy a home.
Months of new home supply is down compared to August 2017 and 2018 levels, but 12% above the lows during the same month in 2016.
The Corelogic/Case-Shiller 20-City Composite Index shows home prices grew 2.0% year-over-year.