With a season of extreme shortages in new home availability, promising signs of increased production might catch up with demand.
Active listings—the number of homes for sale during a specific time—fell 47% during the month ending on April 11th; this marks a new historic low compared to the same time in 2019. (The volitivity of 2020 causes economists to base their forecasts against the backdrop of 2019 rather than 2020.)
Consulting firm Redfin found that home price listings reached a record high of $3,335,750 nationwide in April of 2020. 43% sold for more than their asking price. 59% sold within two weeks of going on the market.
With all this pent-up demand, housing construction aims to meet demand challenges. Home starts in March reached the highest point since 2006, rising 15.3% compared to February.
Single-family home starts rose 19.6% in March compared to the same time last year.
New home permits rose most in the South at 6.4% higher than in February. The Midwest increased by 2%. The West held steady while the Northeast declined 8%.
According to the Census Bureau, home sales increased 66.8% in March 2021 compared to March 2020.
Some speculate that the gap between new home supply and demand trends toward closing.