Redfin: New Builds as Share of Homes for Sale in Q4 Near Record High

(Image courtesy of Redfin)

Redfin, Seattle, found in a recent report that 31.8% of U.S. single-family homes for sale in the fourth quarter were new construction, just shy of the all-time fourth quarter high of 31.9%.

That record was hit during 2022’s fourth quarter. The all-time overall record, hit in Q1 2022, was 34.5%.

Redfin noted that homebuilding has continued to increase, with a notable jump during the pandemic as surging homebuyer demand was driven by record-low mortgage rates.

At the same time, the number of homeowners putting their homes on the market has fallen over the past 18 months, in large part due to low interest rates available during the pandemic. Dubbed the “lock-in effect,” many who got such rates are now reticent to move and lose them.

Homebuilders have been offering concessions–including mortgage rate buydowns–to move homes.

“Newly built homes are selling quickly right now because builders are offering such good discounts,” said Heather Mahmood-Corley, a Redfin Premier Real Estate Agent in Phoenix. “I recently had a buyer who wasn’t interested in a new construction home, but the builder offered such a good rate—5.25%—that they couldn’t afford not to take it. Another one of my buyers got a $10,000 credit for closing costs from a builder.”