Blog

The Knudson File: NEW Home Sales/Prices – April 2022

Nearly 4 years ago in November 2018 mortgage rates briefly went about 5.00% and sales of New Homes stalled, and the Months of Inventory soared.

In April 2022 the same thing has occurred, but interest rates are not anticipated to decline any time soon.

New Single-Family Homes

With generational low mortgage rates due to COVID-19, new home sales spiked.  With mortgage rates well above 5.00%, the April data-based months of inventory spiked, and with further rate increases that have occurred since then, it is anticipated that sales will be further impacted.

Single-Family Residential Construction

5.00% mortgage rates may be a price point for NEW home sales that are sensitive to rate increases.  Note that new home starts are at levels last seen in 2007.  It will be worth monitoring new homes under construction and pipeline management considering the decrease in demand as mortgage rates rise.

Leave a Reply

LANDCO Real Estate