Sales of new homes were up slightly, by 0.8% year-over-year, in 2Q, reversing the trend in the previous two quarters, when new-home sales dropped, while existing home sales were down 0.7% in 2Q.
The supply of new homes was down 1%, representing the biggest annual decline since Q1 2013. The number of existing homes was up 1.1% in Q2, the fourth consecutive quarter of increases.
There was also a 3.4% annual drop in building permits, which is partially due to high material costs and the shortage of skilled labor.
Sale prices for newly built homes dropped 0.5% year-over-year to a median of $372,900 in Q2 2019.
Prices for new homes have remained largely unchanged throughout the first half of this year after seven straight years of increases. Meanwhile, the median sale price for existing homes rose 3.2% in Q2 to $309,700, continuing a seven-year trend of increasing prices.
Since the higher end of the market has softened, the first-time buyer market is currently where most of the demand is, which means that builders are now focused on homes that are less profitable for them.
Refin reported that “of the 10 metros with the highest sales volume, new-home prices were down in half and up in the other half.”
In regions such as Atlanta, new homes sale prices were up 5.7% annually, climbing to $309,900. Prices were also up 1.3% to $364,500 in Dallas and 4% in Nashville to $355,000.
Fast Stats for New Construction:
■ New homes, the median price per square foot was $175, up 2.8% from the year before.
■ Existing homes, the median price per square foot was $180, up 2% year over year.
■ For both new and existing homes, price per square foot has gone up every quarter for the last seven years.
■ New listings for new homes were down 0.7%, making it the second consecutive quarter of declines after seven straight years of increases.
■ For existing homes, new listings were down 0.9%.
■ For all types of residential construction, building permits were down 3.4% year-over-year.
■ For single-family homes, permits were down 5.6%, the third straight quarter of declines for the category.
■ Building permits per 10,000 people dropped 6% year-over-year.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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