New-Home Sales Surge 36 Percent Higher than Last Year

Buyers continue to rush to the new-construction market. Nationally, sales of newly-built, single-family homes in July surged to the highest pace since 2006, jumping 36% higher than a year ago according to the U.S. Department of Housing and Urban Development and U.S. Census Bureau.

Homebuyers are being driven by record-low interest rates, a growing focus on the importance of housing, and a shift in seeking homes in lower-density areas. New build homes offer the flexibility and thoughtfulness of today’s lifestyle that older homes typically don’t offer without reconfiguration.

Areas like Mercer Island, Bellevue, Kirkland, and beyond are offering larger homes and yards for Puget Sound residents while also affording quick access to downtown Seattle and the region’s tech corridors. These shifting buyer needs are being met by builders who are maximizing space with forward-thinking design and functional layouts.

Moreover, sales are increasingly coming from the presale of homes that have not started construction which is up 34% year-over-year. In contrast, sales of completed, ready-to-occupy homes are down almost 24%. These measures point to continued gains for single-family construction ahead.

Nationally, builders are keeping their inventories low. New-home inventory dropped to a four-month supply in July, the lowest since 2013. A six-month supply is considered a benchmark indicating a balanced market. In Seattle, that number is even lower as our local real estate market was minimally impacted by the pandemic driving extra pressure on a market that already had low inventory to begin with.

Think a new-build home is right for you? Reach out to our team today!