National sale prices of new homes slipped 0.3% year over year to a median of
Meanwhile, existing-home prices rose 6%, sales increased 5.8% (the largest gain in three years) and inventory slipped 14.2% (the biggest slide since 2013).
"The market has seen a mismatch between where new construction of homes are needed the most and where new homes are being built, and that's because builders are focused on areas where they can cheaply acquire and develop land," Redfin chief economist
"The only way to solve this mismatch between where people need homes and where homes are being built is for people to move to where the homes are, and that's already happening," said Fairweather. "Looking ahead, permits have increased thanks to low interest rates, so even though inventory is down, there's hope for the future given that permits are up so significantly."
One region with a particularly large swell in building permits is
"New home construction in
To read the full report, including additional metro-level highlights and new construction trends, please visit: https://www.redfin.com/blog/new-home-construction-q4-2019/
Redfin (www.redfin.com) is a technology-powered real estate brokerage, combining its own full-service agents with modern technology to redefine real estate in the consumer's favor. Founded by software engineers, Redfin has the country's #1 brokerage website and offers a host of online tools to consumers, including the Redfin Estimate, the automated home-value estimate with the industry's lowest published error rate for listed homes. Homebuyers and sellers enjoy a full-service, technology-powered experience from Redfin real estate agents, while saving thousands in commissions. Redfin serves more than 85 major metro areas across the U.S. and
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