New Home Construction Takes Double-Digit TumbleBY TAYLOR TOMPKINS Updated June 16, 2022, The Balance
Fewer new homes were constructed in May as the overheated housing market cooled, and weekly unemployment remained low, reports showed Thursday.
Here’s a quick look at the most significant economic indicators of the day and what they tell us.
New Home Construction* In May, construction of new homes was 14.4% lower than in April, as builders continued to lose confidence in the housing market. Construction on nearly 1.55 million homes began in May, according to the Census Bureau, compared with 1.8 million in April. Meanwhile, construction on 1.47 million homes was completed in May, 9.1% more than in the prior month. 1
* While the drop in the number of new homes being built may seem grim, analysts say it’s actually a sign of the market righting itself. Red-hot demand for homes is cooling amid higher mortgage rates, leaving more options for those who are still looking to buy.
* The number of building permits also came in lower than expected in May, but economists said they don’t expect activity to take a drastic plunge.
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Source:
https://www.thebalance.com/new-home-construction-takes-double-digit-tumble-5441617
