- June 24, 2021
- Posted by: Stratford Team
- Category: Business
Angel Oak Capital Advisors CIO Sam Dunlap breaks down the ‘historic supply and demand mismatch’ that has construction lagging behind historical levels.
New home sales unexpectedly fell in May as prices climb to record highs.
Sales of new single-family homes fell 5.9% in May to a seasonally adjusted annual rate of 769,000, according to the Census Bureau and Department of Housing and Urban Development. Last month’s reading was revised down by 46,000 to 817,000. Analysts surveyed by Refinitiv were expecting an increase to 870,000 in May.
New home sales account for about 10% of the housing market.
ELEPHANT IN THE HOUSING MARKET IS A WIN FOR BUILDERS
New home construction has in recent months been slowed supply chain challenges which have resulted in higher commodity costs, including lumber. A surge in prices earlier this year added $36,000 to the cost of building an average sized new home.
Surging input costs and the flight out of city centers…
