【World Property Journal】Record Setting 1 in 4 Homes for Sale in U.S. Are New Construction in Q1

According to national property broker Redfin, more than a quarter (25.7%) of single-family homes for sale in America during the first quarter were new-construction homes. That's up from 20.4% a year earlier and represents the highest share on record.

New-construction homes have steadily been taking up a larger piece of the pie over the last decade, but there has been a notable acceleration during the coronavirus pandemic. There are two primary reasons, according to Redfin Lead Economist Taylor Marr: an increase in homebuilding and a decrease in the number of Americans putting their houses up for sale.

"Building homes has become more attractive and profitable during the pandemic due to record-low mortgage rates and red-hot homebuyer demand," Marr said.

"At the same time, many homeowners have opted to stay put and refinance or remodel their existing homes instead of selling them, allowing new-construction homes to take up a larger portion of the market."

U.S. housing starts--the number of new residential construction projects--jumped nearly 20% month over month in March to the highest level since 2006, a sign that homebuilders are growing more bullish despite lumber shortages and elevated construction costs. Meanwhile, listings of existing homes fell.

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