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DataDigest: What the latest data says about home prices, construction and sales

Housing Wire

Cutting prices is one of several mechanisms homebuilders have employed to keep buyers interested since rates began skyrocketing. Home construction New home construction ramped up early in the pandemic but moderated as interest rates ticked up and mortgage rates followed.

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Zonda announces major business acquisition

Housing Wire

By extension, Zonda also acquired NewHomeSource.com , one of the largest listings platforms for newly constructed homes, and Envision , a new home design platform. Founded in 2000, BDX is owned by a group of 24 leading U.S. Zonda will be able to integrate its new construction data and tech platform with the leading portal for U.S.

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Homebuilders are feeling pretty good right now

Housing Wire

The NAHB/HMI report is based on a monthly survey of NAHB members, in which homebuilders are asked to rate both current market conditions for the sale of new homes and expected conditions for the next six months, as well as traffic of prospective buyers of new homes. That share from 2000-2019 was a 12.7%

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Where’s the bottom for new home sales?

Housing Wire

New home sales are now below the recession levels of 2000 and have fallen all the way to 1996 levels, when interest rates were near 8%. The builders will pull back on construction when the supply is 6.5 From Census: For Sale Inventory and Months’ Supply, The seasonally?adjusted months of supply is still under construction 2.1

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Higher rates flip the homebuilders’ fortunes (again)

Housing Wire

They don’t ever have to have the conversation about how low their total payment is in the new home they’re buying, unlike some of their buyers (which explains higher cancellation rates). As we can see in the chart below, we are still below the recession levels of 2000 and really trending at 1996 levels. This represents a supply of 7.9

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The big short in housing supply isn’t going away

Housing Wire

In November 2021, the supply of homes for sale nationwide as a percentage of occupied residential inventory remained near historic lows at 1.19% — meaning only 119 in every 10,000 homes were for sale — much lower than the historical average of 2.5%. The majority of the supply of homes for sale come from existing homes, not new construction.

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Builders rediscover a tool from the 1980s that keeps new home prices from falling

Housing Wire

While sellers of existing homes have struggled with rising rates and softening demand, homebuilders have not only survived, but thrived in this market thanks to the use of mortgage rate buydowns , a tool more widely used by builders since their business is selling homes and clearing inventory.

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