Prices for new homes have remained largely unchanged throughout the first half of this year after seven straight years of increases. Meanwhile, the median sale price for existing homes rose 3.2 percent in the second quarter to
Sales of new homes increased by 0.8 percent annually in the second quarter, reversing the trend seen in the previous two quarters, when new-home sales dropped. Existing home sales, which were down 0.7 percent in the second quarter, have followed a similar pattern, though sales for existing homes have yet to reverse into positive territory.
Meanwhile, supply of new homes was down 1 percent, the biggest annual decline since the first quarter of 2013. Supply of existing homes was up 1.1 percent in the second quarter, the fourth consecutive quarter of increases.
The small price decline for new homes in the second quarter, along with a 0.7 percent year-over-year decrease in new listings and a 3.4 percent annual drop in building permits, signals that the new-home market remained soft in the second quarter.
"The moderation we're seeing in new-home prices was expected and follows right along with our observation late last year that builders were finally shifting their focus toward offering smaller, more affordable homes," said Redfin chief economist
Of the 10 metros with the highest sales volume, new-home prices were down in half and up in the other half. In
Although the nationwide dip in new-home prices in the second quarter was small, there were bigger declines in expensive markets on both coasts.
"When there's a shift in the market, new construction is always one of the first categories to take a hit," said San Jose Redfin agent
The places where prices for new homes rose most are mostly less expensive metros such as
To read the full report, including additional metro-level highlights and national new construction trends, please visit: https://www.redfin.com/blog/new-construction-q2-2019.
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 90 major metro areas across the U.S. and
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the
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Redfin Journalist Services: Erin Osgood, 206-588-6863, email@example.com