According to the latest report from Redfin, a technology-powered residential real estate company, based in Seattle Washington, new listings of newly-built homes dropped -4.1% year over year to a seasonally-adjusted rate of 74,000 in August, reversing course after a 3.8% gain in July. Meanwhile, new listings of existing homes grew 5.2%. In a prepared statement Redfin’s chief economist Daryl Fairweather said that, “There’s plenty of demand for new homes, but builders are facing a unique and costly set of hurdles as they attempt to satisfy that demand. Listing of new homes aren’t bouncing back as quickly as listings of existing homes because, unlike individual homeowners, construction companies have to deal with lumber and labor shortages during the pandemic. They’re also competing for labor and materials with folks who are renovating their houses during quarantine. The lack of new listings is keeping builders from reaching their full potential in terms of home-sales growth.” Homebuilding activity slumped in August, the U.S. government reported last week.
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