Weekly Special | December 17, 2017

Home Builder Sales Poised For Explosive Growth

New home sales are set to post a 7 year high this year, yet this number of sales is still far below what we would normally expect to see.

The graph above shows the total number of new homes sales (red) and existing home sales (green) for condos, townhomes, and single family detached homes each year.

The red line shows the percentage of new homes sold versus all home sales, and this year new homes represent just under 10% of all sales.

From 1991 through 2009, new homes represented 22% of all home sales, but since 2010 we’ve seen it drop to just 9%.

One can assume that new apartment construction has taken up some of the slack here, but a simple look at the inventory of homes for sale will tell you that more new homes are needed, and the need is growing.

The demand for homes is strong enough to allow for builder sales to more than double over the next few years. Condos and townhomes below $250K can expect the greatest growth.

This issue went with a longer report on our blog: read the full blog post. The original one-page Weekly Special PDF is still available.