Sales + Marketing

Low Inventory Slows New Home Sales at the Close of 2021

New home prices are up 20% year-over-year while a record 110,000 residential construction projects have yet to be started
Dec. 27, 2021
2 min read

Though sales of single-family houses are rising on a monthly basis, November 2021 rates were down 14 percent year-over year at a seasonally adjusted annual rate of 744,000, according to the CalculatedRisk Newsletter. New home sales soared during the first months of the pandemic, but decelerated into 2021 as a result of limited supply and record-high prices.

Despite hitting an all-time low of 33 thousand completed homes for sale earlier this year, inventory is back up to 39 thousand, and the inventory of homes under construction is at its highest since 2007, though supply-chain issues will likely delay many projects into the coming year.

Sales of new single family houses in November 2021 were at a seasonally adjusted annual rate of 744,000, according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 12.4 percent above the revised October rate of 662,000, but is 14.0 percent below the November 2020 estimate of 865,000.

The months of supply decreased in November to 6.5 months from 7.1 months in October.

The all-time record high was 12.1 months of supply in January 2009. The all-time record low was 3.5 months, most recently in October 2020.

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