Thursday, July 29, 2021
HomeMBAChart of the WeekBuilder Applications Survey vs. Census New Home Sales - MBA Chart of...

Builder Applications Survey vs. Census New Home Sales – MBA Chart of the Week

According to data from our Builder Applications Survey (BAS), new home purchase activity fell in September but remained higher than a year ago, continuing a trend where purchase demand for new homes for sale this year have consistently outpaced year ago levels. The U.S. Census Bureau series for new home sales has also shown a similar trend of year-over-year growth, and tracks closely to our BAS estimates shown in this week’s chart.

In a separate report from Census earlier this month single-family starts remained robust, increasing slightly to a pace of 918,000 units – the highest since May 2019. However, the increase in single-family starts was solely concentrated in the South. Most of the country still needs more new construction to meet job growth and demand. It is promising that single-family permits continued to rise, increasing for the fifth consecutive month.

This strength in new construction and new home sales should continue in the final months of the year, as a combination of a strong job market and low mortgage rates continue to create housing demand. The pick-up in new construction is a welcome sign that builders are moving to meet this demand. Buyer interest has been particularly robust among first-time homebuyers, whose share of home sales continues to increase. Millennials’ interest in homeownership is strong, and should continue to support home sales growth heading into next year.

– Anh DoanJoel Kan

Source: MBA Builder Applications Survey

For information on other MBA Research products, please visit the MBA Research online or our Chart of the Week page.

Not on the list? Need the link for a friend? Sign up for chart of the week, here.


Most Popular

Recent Comments