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Real Estate

“There were just 2.6 new homes sold annually for every thousand people aged 16 and over living in the U.S. last month. That compares with a peak rate of 6.1 in July 2005 and an average rate of 3.5 during the 1990s.”
“In the years immediately following the financial crisis, when household balance sheets were still in tatters, tepid new home sales came down to a lack of buying power. More recently, the problem has been supply—there are far fewer new homes on the market than there tended to be before the crisis.”
“Builders can’t easily step up construction. Labor availability has become a persistent concern. One reason that Toll Brothers shares fell sharply following its results Tuesday is that it said labor costs had eaten into margins. Raw materials are costlier too, with framing lumber fetching 39% more than a year ago, according to lumber industry newsletter Random Lengths. Last, but not least, 30-year mortgage rates just hit a seven-year high.”

WSJ – Daily Shot: FRED – Average Sales Price for New Homes Sold in the US 5/24

WSJ – Daily Shot: FRED – Percent of New Homes Sold in the US Between $300k-$399k 5/24

WSJ – Daily Shot: FRED – Percent of New Homes Sold in the US $750k and Over 5/24

WSJ – Daily Shot: Goldman Sachs – Commercial RE Pricing to Rent Increases 5/24

WSJ – Daily Shot: Calculated Risk – Light Vehicle Sales Percentage of Total 5/24