By Robert Dietz | NAHB Now
As supply-side challenges continue, June recorded a decline of 6.6% for sales of newly-constructed single family homes, according to estimates from the Census Bureau and HUD. The June seasonally adjusted annual rate (676K) was the lowest since April 2020, due to builders slowing sales as a consequence of higher material costs and declining availability of labor, material and lots. Higher prices have also affected housing affordability. Nonetheless, we expect an upward revision for the June sales estimate next month due to data from other NAHB surveys suggesting solid market conditions.
Despite higher prices, residential demand continues to be supported by low interest rates (which have declined in recent months), a consumer focus on the importance of housing, and solid demand in lower-density markets like suburbs and exurbs. However, higher building costs, longer delivery times, and general unpredictability in the residential construction supply-chain are having measurable impacts on new home prices. In June, the median price of a newly-built home was 6% higher than a year ago, at $361,800.