January 29, 2021.

(Washington, D.C., Economic & Insurance News by Insurance Market 360) -Shortage of construction material and challenges to meet the demand declined the sales of new homes in November 2020 as per the latest report of US Department of Housing and Urban Development and Census Bureau. Single built home sales went down by 11% in November 2020 which is 20.8% more than same time last year. The projected and corrected value of 841,000 sales is the total completions in the next 12 months.

NAHB Chief Economist Robert Dietz expressed, “The home building industry saw a historic gap between the pace of new home sales and construction of for-sale single-family housing this fall,”

According to the latest reports, a reasonable increase of 4.1% observed in the construction materials log in the last four months’ with a target of 286,000 new houses for completion. It is 11.2% less than same period last year. But, the number of houses completed is only 43,000.The average new house sale price increased by $7,300 than the previous year. On the whole, rise is witnessed in all the four directions of the region in the new house sales: Northeast (28.2%), Midwest (24%), South (16.9%) and West (20.5%)

“Though the market remains strong, the pace of sales pulled back in November as inventory remains low and affordability concerns persist as builders grapple with a shortage of lots, labor and building materials,” said NAHB Chairman Chuck Fowke.

Source: National Association of Home Builders

Reference: http://nahbnow.com/