Buyers will need to move quick, if they are looking to purchase a brand-new home.
Based off the seasonally adjusted numbers in the latest residential sales report, which was released by the U.S. Census Bureau & U.S. Department of housing and urban development, more newly built homes were completed in May and not many are next in the line-up. Within 12 months’ time, seasonally adjusted numbers have been smoothed out to offset the seasonal fluctuations.
The good news is that about 1.164 million much needed new homes were built in the month of May which is 5.6% more than the April 2017 and a significant increase of 14.6% from May of last year.
Single family homes that included backyard space, made an increase from 4.9% in April and 12.8% from May.
Roughly 12% more apartment and condo buildings with 5+ unites were built in May than April. These new multi-family buildings were 18.4% higher than May of last year.
The construction "prevents the number of homes on the market from falling too rapidly," says realtor.com®'s senior economist, Joseph Kirchner. "Unfortunately, it is not enough to stem the steady decline of homes on the market, a drop that results in increasing prices and, in some markets, bidding wars."
Also, those newly built homes cost a significant amount more than existing homes by 25.6%. (Existing homes, meaning homes that have been lived in.)
The new abodes cost a median $309,200 in April, according to the most recent U.S. Census Bureau and U.S. Department of Housing and Urban Development data. Meanwhile, the median existing-home price hit $244,800 in April, according to the most recent data from the National Association of Realtors.
But despite the housing shortage, builders received only about 4.9% fewer permits to put up new homes in May compared with April. The number of permits issued, 1.168 million, were also about 0.8% under what they were in May 2016.
According to the most recent U.S. Census Bureau and U.S. Department of Housing and Urban Development data, these new homes cost on average $309,200 in April. While the median existing-home price reached $244.800 in April, based off the most recent data from NAR. However, despite the housing shortage, these builders got only about 4.9% less permits to put up these new homes in May 2017 compared to May 2016.
"Housing shortages look to intensify and may well turn into a housing emergency if the discrepancy between housing demand and housing supply widens further," Lawrence Yun, chief economist of the National Association of Realtors, said in a statement. "The falling housing starts and housing permits in May are befuddling, given the lack of homes for sale and the quick pace of selling newly constructed homes."
This is expected to drive up home prices and rents, he said.
As single-family home permits fell 1.9% from April but increased 6% from the April of last year.
Apartment & condo building permits hit a low at 10.1% from April and 13.1% from May of the previous year, which included buildings with 5+ units. Smart Content [AgentProLink]
John Castelli, Realtor
Committed to Results.