US Census Bureau Data showed that Homebuyers purchased 30% fewer Newly Built Homes in April 2022 compared to April 2021. That’s one of the largest YoY declines on record and is further evidence that the Housing Crash has started.
Homebuyers dropped out of the market for new homes due to 1) increasing mortgage rates, 2) inflation, and 3) pessimism regarding the US Housing Market. These headwinds are combining to make life difficult for Home Builders, who are building a new record amount of single-family homes in 2022.
The declines in Home Sales were biggest in the South – across Housing Markets such as Texas, Florida, and Tennessee. This region saw a 37% decline, compared to 25% in the Midwest and 12% in the West. Interestingly – Northeast Markets increased sales by 17%.
Perhaps most concerning – the decline in Home Sales to go along with peak in Home Construction is a historical Recession predictor. Nearly every time in the last 50 Years that Home Building ran up to a peak, a Recession followed in the next two years.
Previous Home Builder Videos:
Cancelled Contracts Coming (April 1, 2022): https://youtu.be/OUogg4k_6nw
Home Builders are Going Crazy (Jan 31, 2022): https://youtu.be/rSOz8cI8yZ8
Home Builder Short Video (Jan 24, 2022): https://youtu.be/hLloL7TIo1A
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