New single-family homes sold nearly 20% more in 2020 than in 2019, likely due to the shortage of existing homes on the market. According to Zillow, last year was the best year for new-home sales since 2006, thanks to low mortgage rates, low inventory, and the pandemic. A new-home’s attractiveness may have grown due to Americans’ increased awareness on health and wellness. About 811,000 new-homes sold last year–an 18.8% increase compared to 2019. But the thirst for new-homes is predicted to continue through 2021.
The supply of new homes for sale has been picking up lately, but remains low compared to historic norms — which is likely to incentivize builders to increase their activity, particularly when demand for housing remains solid. Expect the future permit and starts pipeline to be quite full this year. With a banner year in the books, today’s new home sales report set the stage for a solid start to 2021.
Advertisement
Related Stories
Market Data + Trends
Vacation and Investment Home Market Insights
A recent report finds beach homes to be the most sought-after vacation-home type and that the investment potential of a second home is an important factor in the purchasing decision
Affordability
How Much Income Do First-Time Buyers Need to Afford the Average Home?
The median-priced home is unaffordable in 44 of the 50 largest U.S. metro areas
Affordability
What Is the Relationship Between Urban vs. Suburban Development and Affordability?
A new paper from Harvard's Joint Center looks at whether expanding the supply of suburban housing could, in turn, help make dense urban areas more affordable