Red hot US housing market, January new home sales jump 4 3%

Dated: March 5 2021

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With the housing inventory in short supply demand for new construction in the US rose 4.3% in January as the housing market continues to be one of the strongest segments of the economy. In 2020 new construction sales were pushed to an adjusted annual rate of 923K higher than the expected 855K. New construction sales increased 19.3% compared to last year at this time. The number could have been much higher if the building community would have been able to keep up with the demand. The median price of a new home sold in January was $346.000 up greater than 5% from a year ago. The cost of labor and materials also increases with lumber futures alone increasing 130% in the past year adding thousands of dollars to the cost of a new home. The Commerce Department reports the applications for building permits increased 10.4% in January to an annual rate of 1.88M units! Strong sales figures in the first month of 2021 are an extension of 2020 when new home construction increased 7% to 1.38M units. Availability and affordability persist despite the market's resiliency. Inventory of available houses slipped to a 4 month supply. Last January there was a 5 month supply. Ask me all your real estate questions. www.davidlasley.realtor #davidlasley #douglasrealty #realestate #realtor #dreamhomes #homebuyers #realestateagent #homesofinstagram #properties #homesearch #realestateinvesting #housingmarket

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David Lasley

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