In this mid-June housing market summary, we will cover topics such as the availability of new and pre-owned homes, the rate at which houses are being sold, pricing trends, mortgage interest rates, rental rates, and other relevant factors.
In May, the housing market decline worsened compared to April. Newly listed homes for sale dropped by 22.7% YoY, slightly higher than April’s 21.3% decrease. New listings remained 29.4% below pre-pandemic levels, even lower than May 2020. Certain regions saw a 20.5% YoY decrease in new listings.
Compared to the same week in 2022, the active inventory of existing single-family homes saw a 12.8% increase, while it experienced a significant decrease of 52.4% compared to the same week in 2019. Although inventory reached its seasonal low point in mid-April, there hasn’t been a substantial increase since then. It appears probable that the inventory will continue to be lower compared to the same time last year by late June or early July.
In the case of new homes, the number of homes currently under construction (indicated by the blue line) stands at 4.6 months, which is significantly higher than the typical level. This increase in homes under construction is primarily attributed to supply chain limitations. On the other hand, the number of completed homes available for sale (represented by the red line) is 1.23 months, which is relatively close to the standard level.
A notable achievement is reached as the present level of construction activity witnesses a combined total of 1.675 million units under construction, coming within just 35 thousand units of the all-time record established in October 2022 at 1.710 million units. This remarkable milestone highlights the substantial magnitude of ongoing construction endeavors, closely approaching the historical pinnacle. It serves as a testament to the industry’s dedication to fulfilling housing requirements and catering to the diverse needs of different generations.
Housing starts are currently approaching a record level, with 1.68 million units under construction. Among these, 698 thousand are single-family units (red line), and 977 thousand are multi-family units. This marks a significant milestone, as the total construction activity stands at 1.675 million units, just 35 thousand units short of the all-time record set in October 2022. These numbers reflect the industry’s dedication to meeting housing demands and catering to the needs of different generations, showcasing the substantial scale of ongoing construction efforts.