Sales of New U.S. Homes Experience Slight Dip During April 2021

1. For Immediate Release Summary: Sales of new homes in the U.S. have experienced a slight dip during the month of April 2021. Sales of New U.S. Homes Experience Slight Dip During April 2021 May 27, 2021 Information released by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau has indicated that the sharp rise in the cost of building materials and low inventory thereof have resulted in the prices of new homes increasing by as much as 20%. This has also had a negative effect on overall housing affordability, resulting in a decrease in new home sales. Sales of newly built family homes decreased by just under 6% during April this year. Chuck Fowke, chairman of the National Association of Home Builders (NAHB), stated in this regard, “Affordability factors are clearly affecting new home sales. A growing number of builders are limiting sales in order to manage supply chains, including access and cost factors associated with lumber, appliances, and other building materials. Policymakers need to find ways to improve the supply chain, by facilitating more domestic production, or in cases where that cannot be done, suspending tariffs to allow for more imports.” NAHB Chief Economist, Robert Dietz, stated, “After a period of builders holding back price increases, new home prices were 20% higher year-over-year per the April Census data. Higher costs have priced out buyers, particularly at the lower end of the market. A year ago, 45% of new home sales were priced below #300,000. In April 2021, only 27% of new home sales were priced below $300,000.” Sales of new homes take place when sales contracts are signed or deposits are accepted and the home in questions can be at any stage of the construction process – not yet started, currently under construction or even completed. Along with the adjustments made for seasonal effects, the April figure of 863,000 units is the amount of homes that would end up selling if the current pace had to continue over the next year. Inventory of homes also remains low at just a 4.4 month supply, with just over 315,000 new single family homes for sale – a third less than in April 2020. Completed family homes continue falling as a market share, representing a little over 10% of April’s inventory – compared to around 25% last year at this time. At this time, the median sales price was at just over $372,000, which is an increase from last year’s median sales price of $310,100 in 2020. On a year-to-date basis, new home sales in various regions rose, with the Northeast seeing a 50.7% increase, the Midwest experiencing an increase of just over 45%, 45.5% down South and a meager 3.6% in the West. The increases have been largely attributed to the lower sales figures that were experienced during the COVID19 pandemic in 2020. About the Company: CCM Finance is a team of experienced hard moneylenders that focuses its efforts on assisting real estate investors to obtain the capital they need as conveniently as possible. The company is situated at 7801 E. Bush Lake Road, Suite 430, Minneapolis and can be contacted by calling (612)-254-0025, emailing info@ccm-finance.com or completing the website contact form. ###