Buyers’ Strike: Sales of New Houses Plunge 32% in 5 Months, Unsold Inventory Highest since 2008, Prices Drop, Construction Costs Spike by Most since 1980 | Wolf Street

The concept of selling overpriced new houses to everyone is running into trouble. Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. This multi-month plunge brought house sales back to pre-pandemic levels. And given the construction boom in apartments and condos in urban centers over the past decade, single-family house sales remain a fraction of the boom in 2002 through 2007:

Soaring inventories of unsold new houses. Homebuilders are building, that’s for sure, even if more homes are now sitting on the market. Supply jumped to 6.3 months at the current rate of sales, as unsold speculative inventory for sale jumped to 353,000 houses (seasonally adjusted), the most since December 2008:

Buyers’ Strike: Sales of New Houses Plunge 32% in 5 Months, Unsold Inventory Highest since 2008, Prices Drop, Construction Costs Spike by Most since 1980 | Wolf Street