More than a Third of All New-Construction Homes Purchased in October Had Yet to Begin Construction

In a recent Zillow Research article, it was being reported that 38.5% of new-construction homes purchased in October 2020 had yet to begin construction. That is 10% higher than October 2019 and the highest level since 2005. The report says that this is a sign of both continued home building and market health to come, and of builders’ savvy response to pandemic-influenced market factors. The housing market has been a true bright spot throughout the COVID-driven recession, and nowhere is that more apparent than in recent new home sales figures. Slightly more than 1 million new homes were sold in both August and September (at a seasonally adjusted annualized rate), and almost 1 million were sold in October, capping the strongest three-month stretch for new home sales since 2006. The research concludes that the fact that so many buyers are eager to purchase homes that they have only seen in blueprints only reinforces the observation that demand for housing is very strong and should remain that way for years to come.