US Newly Built Home Sales Accounted for Nearly One-Third of All Single-Family Sales in Q2

Redfin reported on Thursday (8-17-23) that in 2023Q2, newly built homes made up nearly one-third (31.4%) of single-family homes on the market. That is the highest share of any second quarter on record, with new construction keeping the housing market viable amid the significant shortage of existing homes for sale.

With inventory at a record low, many buyers are turning to new construction. But because overall demand is still relatively low, with high rates continuing to sideline many would-be homebuyers, some builders are lowering prices and offering perks to offload excess inventory.

Redfin notes that the portion of new homes of all inventory is up 30.3% year-over-year, and nearly double the pre-pandemic share of approximately 17% in 2019Q2. However, the Q2 share is down from a near-record-high of 33.6% set in Q1. Redfin says that is a normal seasonal pattern, as the share of new homes tends to peak in the winter months.