Buyers’ Strike: Sales of New Houses Plunge 32% in 5 Months, Unsold Inventory Highest Since 2008, Prices Drop, Construction Costs Spike by Most Since 1980

by Wolf Richter
Wolf Street

Bottom falls out at lower end. Fed-enriched high-end buyers doing fine.

The concept of selling overpriced new houses to everyone is running into trouble. Sales of new single-family houses in June plunged by 6.6% from May, and by 32% from the peak in January, to a seasonally adjusted annual rate of 676,000 houses, the lowest June since 2018, according to the Census Bureau this morning. This multi-month plunge brought house sales back to pre-pandemic levels. And given the construction boom in apartments and condos in urban centers over the past decade, single-family house sales remain a fraction of the boom in 2002 through 2007:

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