According to recently published statistics from the US Department of Housing and Urban Development and the US Census Bureau, sales of newly constructed single-family houses dropped 6.6 percent in June to a seasonally adjusted annual rate of 676,000.
The June rate is the lowest since April 2020, after lower adjustments to the May estimate. Despite the current downward trend, year-to-date new home sales are up 13.5 percent.
“Sales continued to trend lower in June as some builders slowed sales contracts to manage supply-chains, amidst longer delivery times and higher construction costs,” said NAHB Chairman Chuck Fowke. “While lumber prices have shown some improvement in spot markets, these declines take time to translate into lower construction costs. Moreover, other items like OSB remain elevated.”
When Does a New Home Sale Get Recorded?
When a sales contract is signed or a deposit is accepted, a new house is sold. The house may be at any stage of construction: unfinished, in progress, or finished. In addition to correcting for seasonal influences, the June figure of 676,000 units represents the number of houses that would sell over the following 12 months if the current pace were to be maintained.
Oklahoma New Home Inventory Levels
With 353,000 new single-family houses for sale, up 46.5 percent from June 2020, inventory increased somewhat but remained low at a 6.3-month supply. The inventory of houses for sale, but not yet built, was up 84 percent year over year, indicating supply-side constraints in the construction industry.
Completed, ready-to-occupy inventory, on the other hand, is down 44 percent year-over-year to only 36,000 houses.
Median Price for New Homes in Oklahoma
The median sales price was $361,800, up six percent from the median sales price of $341,100 a year ago.
Where are New Homes Being Sold Within the State?
Year-to-date, new house sales increased in all four areas, with the Northeast up 19.5 percent, the Midwest 23.9 percent, the South 15.6 percent, and the West 4.1 percent. Lower sales volume during the COVID-19 debacle a year ago contributed to these substantial rises.