Existing Home Sales Slow, but Demand for New-Construction Rises
Rising new-home inventory is turning the heads of homebuyers bogged down by a lack of existing homes for sale
June 22, 2023
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High interest rates, inflated home prices, and dwindling supply are slowing down a traditionally busy spring market, but according to CNBC, sales of newly constructed homes are picking up steam. Existing-home sales were essentially flat from April to May, rising by just 0.2% to a seasonally adjusted, annualized pace of 4.3 million units.
While new construction saw a bit more activity in May, total supply remains low across all facets of the for-sale market, driving up competition and sustaining high home prices even during a lethargic period of homebuying.
“Newly constructed homes are selling at a pace reminiscent of pre-pandemic times because of abundant inventory in that sector,” Lawrence Yun, chief economist for the NAR, said in a release. “However, existing-home sales activity is down sizably due to the current supply being roughly half the level of 2019.”
