in Estimated risk per 26.07.2022 11:48:00
Today in the Calculated Risk Real Estate newsletter: New home sales plummet, record months of unsold inventory under construction
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The following chart shows the months of deliveries by construction stage. “Months of delivery” is the inventory at each stage divided by the sales level.
The inventory of new houses under construction is 6.22 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 an absolute record; higher than the previous record set in 1980.
And record 110 thousand houses were never launched – about 2.24 months supply (grey line) – more than double the normal level. Developers are likely to delay building some homes until they have tighter controls on prices and demand.
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