New home sales up in May, more than 5 months under construction

on Estimated risk per 24.06.2022 11:23:00

Today in the Calculated Risk Real Estate newsletter: New home sales up in May, more than 5 months under construction

Extract from the letter:

The following graph shows the months of deliveries by construction stage. “Months of delivery” is the inventory at each stage divided by the sales level.

active inventoryThe delivery is completed in just over 0.68 months (red line).. This is about half the normal level.

The inventory of new houses under construction is 5.0 months. (blue line) – significantly above the normal level. This increased level of homes under construction is due to restrictions in the supply chain. This is close to the record set in 1980.

And a record 115,000 homes were never launched – about 2.0 months of supply (gray line) – almost twice the normal level. Home builders are likely to put off building some houses until they have a better idea of ​​prices and demand.

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