Join us on LinkedIn Follow us on Twitter Like us on Facebook Follow us on Instagram
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation4

Market Watch

Redfin: New home construction in Q4 near record high

Email A Friend Printer Friendly Version
0 comments
Market Watch
Wednesday, February 21, 2024

Nationwide, 31.8 percent of U.S. single-family homes for sale in the fourth quarter were new construction, according to a new report from Redfin.

That’s comparable with 31.9 percent a year earlier, which is the highest level of any fourth quarter on record.

Redfin said newly built homes are taking up a growing share of the for-sale housing pie for two primary reasons:

Homebuilding has increased. Homebuilding has been on an upward trajectory since 2009 as builders have slowly climbed their way out of the hole caused by the Great Recession. Construction also jumped during the pandemic as builders responded to surging homebuyer demand fueled by record-low mortgage rates.

The number of homeowners putting their houses on the market has decreased over the last year and a half. That’s because mortgage rates started rising in 2022 and jumped to a 23-year high in 2023, prompting many homeowners to stay put instead of selling and losing the rock-bottom rate they scored during the pandemic. While mortgage rates have fallen a bit in the last few months, this “lock-in effect” continues to hamper listings, which are higher than they were a year ago but remain far below pre-pandemic levels.

Homebuilders have been offering sizable concessions, including money for mortgage rate buydowns, to attract bidders and offload inventory. That has made it hard for some individual sellers of existing homes to compete for buyers.

“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 percent –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.”

While builders are offering discounts, they’ve also boosted prices, according to Christine Kooiker, a Redfin premier real estate agent in Grand Rapids, Mich.

“One of the builders in Grand Rapids that focuses on entry-level homes now has prices in the mid $300,000 range,” Kooiker said. “Not long ago, buyers could get a new construction home here for $250,000 or $300,000.”

Roughly two of every five (42 percent) new single-family homes that sold in 2022 went for $500,000 or more, up from under one-third (30 percent) in 2021 and 18 percent in 2020, according to Redfin.

Today's other top stories
NAA ‘Appraiser of the Year’ speaks to appraisal topics, business ownership
A guide for appraisers to utilize new reports
Cotality: Case-Shiller Index records February gain
Aivre, Restb.ai combine efforts for time-saving appraisals
Mortgage application payments dropped in March


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
Please enter a comment.
CAPTCHA Validation
CAPTCHA
Code:
Please enter the word displayed in the image above. Please enter the word displayed in the image above.
: 
Please enter your name.
: 
Please enter your email address.
This field must contain a valid email address.
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 504 times.

Print Edition - April 28, 2025

News by Topic   In-depth Reports   Events   Subscribe
Conference Coverage
Appraiser News
Commercial Corner
Legal News
Market Watch
Technology Corner
 
 
Expanding Your Appraisal Business
2025 State of the Industry
2024 Voice of the Appraiser
2024 Appraisal Technology
Marketing Your Business
Appraisal Bias
Archives
 
National Settlement Services Summit (NS3)
Women's Leadership Summit (WLS)
Webinars
 
Subscriptions
Free Email Updates
Try a Free Edition
News by Edition   About   Other Publications    
March 31, 2025
April 14, 2025
April 28, 2025
Archives
 
Valuation Review
Contact / Editors
Social Media
Advertise
Request a Media Kit
Are You An Expert?
Subscriber Agreement
 
Dodd Frank Update
RESPA News
The Title Report
The Legal Description
   
Copyright © 2002-2025 Valuation Review
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.valuationreview.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> Dodd Frank Update
> RESPA News
> The Title Report
> The Legal Description
> NS3 The Summit
> Women's Leadership Summit
> October Research, LLC
> The October Store
Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
NEWS BY EDITION
IN-DEPTH REPORTS
EVENTS
RESOURCES
FREE EMAIL UPDATES
ABOUT
SUBSCRIBE
Conference Coverage
Appraiser News
Commercial Corner
Legal News
Market Watch
Technology Corner
Sponsored Content
Current Edition
April 14, 2025
March 31, 2025
March 17, 2025
March 3, 2025
Archives
Expanding Your Appraisal Business
2024 Voice of the Appraiser
2025 State of the Industry
2024 Appraisal Technology
Marketing Your Business
Real Estate Compliance Outlook
Appraisal Bias
Finding & Training the Next Gen
Archives
National Settlement
Services Summit (NS3)
Women's Leadership
Summit (WLS)
Webinars
CFPB's Shake-Up & Its Impact
Technology Series
2025 Economic Outlook Series
Securing Your Cyber Network
Appraising Office Space Today
Compliance Series
Manufactured Housing
Eminent Domain
Keys For Operational Efficiency
Drones Do's and Don'ts
How to be an Expert Witness
Webinar Archives
Keys to Real Estate Podcast
Blog - Tuesdays with Mary
Executive Interview Series
Social Media
Valuation Review
Contact Us
Advertise
Request a Media Kit
Are You An Expert
Subscriber Agreement