In June 2021, the volume of new home sales dropped to its lowest level since the onset of COVID-19 in early 2020. The common consensus is that low inventory and sky-high prices are forcing the market to adjust. Of course, this was inevitable; when inventory is low, prices will continue to climb until they reach a point that the consumer is unwilling to pay.
According to the U.S. government, new home sales decreased by 6.6% in June 2021, which is far more significant than the experts had predicted. To be fair, the Midwest saw sales increase, but the rest of the country saw a decrease. In January 2021 (when pricing was a little less competitive) new home sales reached a 15-year high. While demand for homes remains high, it appears many willing buyers have been priced out of the market; homes are about 12% more expensive than they were in June 2020.
The slowdown is anticipated to continue in the following months and may have a snowballing impact on inventory; many people will not sell their homes because they aren’t comfortable buying another home to move into.
It’s always good to note that real estate trends around the country often don’t apply to Los Angeles and the market here is certainly hot!
At the Chernov Team we understand that knowledge is power, and knowledge of how the rate of home sales compares to previous datapoints is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.