Special Report: New Home Sales
Special Report: New Home Sales Trend Up Amid Covid-19 Pandemic
The monthly CBA Land Capital Market Updates typically focus on existing home sales as an indicator of the single-family home market due to a high historical correlation between existing home sales and new home sales. The impact of Covid-19 has caused a break in the correlation between existing and new home sales. We created a special new home sales report to provide our clients and colleagues insight into the opportunities we are seeing in the new home market. Take a look at the report here!
Highlights include:
- Pending new home sales continued the rebound that started in mid-April and posted a 16.7% month-over-month increase in May
At 18.1%, Houston’s New Home Sales Pending index was greater than the National index of 16.7% month-over-month. - The New Home Sales Pending Index grew 15.7% month-over-month in Dallas. Austin (6.9%) and San Antonio (10.4%) were also top-performing markets.
- Low mortgage rates, demand, greater flexibility of location due to the shift to work-from-home, and an increased savings rate helping with the down payments are fueling new home purchases. Mortgage application rates point to continued growth.
- The national index value for New Home Pending Sales is 101.6 according to Metrostudy. An index value of over 100 indicates the market is doing better than it was in June 2016.
- New home sales in 9 of 20 select markets rose year-over-year in May. Of these, Houston had the highest growth at 12.4%. Austin, Dallas, and San Antonio were also among the top 10 performing markets measured. Nationally, New Home Sales Pending are down 5.2%.