The U.S. housing industry has bounced back from the COVID-19 virus shutdown with a very strong "V" recovery. The current historically record low interest rates with a 30-year fixed rate mortgage below 3.0% has fueled the housing industry with very strong home construction. New and existing home sales with housing inventories available for sale are extremely low.
Since April, total housing starts are up over 60% with the single-family activity registering almost a 40% increase in three months. New home sales registered an increase of over 58% from April through July with the average sales price rising 8.6% during the same period to $391,300. The available new home inventory decreased from 6.8 months of supply to 4 months of supply.
Existing home sales since May increased by 49.9% to an annual rate of 5.86 million with a 6.2% increase in the average sales price to $337,500. There is basically no existing home inventory currently, declining to only 3.1 months of supply.
Updated: September 30, 2020
Charles C. Shinn, Jr., Ph.D.
President, Builder Partnerships / The Shinn Group